Tenant Guides5 min readOctober 2026

HRA Exemption Rules 2026: How to Claim Tax Benefits on Rent

A complete guide for salaried employees on how to calculate House Rent Allowance (HRA) exemption, submit rent receipts, and save income tax.

HRA Exemption Rules 2026: How to Claim Tax Benefits on Rent

What is House Rent Allowance (HRA)?

House Rent Allowance (HRA) is a component of your salary provided by your employer to meet the cost of renting a home. Under Section 10(13A) of the Income Tax Act, a portion of this HRA is completely tax-free if you live in a rented house.

Tax Exemption Tool

HRA Exemption Calculator (Section 10(13A))

Calculate tax-exempt House Rent Allowance under Metro (50%) and Non-Metro (40%) slab rules.

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How is HRA Exemption Calculated?

Your HRA exemption is the minimum of three amounts:

1
Actual HRA received from your employer
2
Actual rent paid minus 10% of your basic salary
3
50% of basic salary (if you live in a metro city like Delhi, Mumbai, Chennai, or Kolkata) OR 40% of basic salary (for non-metros like Bangalore, Pune, Hyderabad).

Documents Required to Claim HRA

To claim your HRA tax exemption at the end of the financial year, you must submit proof to your HR department. You will need a valid Rent Agreement and monthly Rent Receipts. If your annual rent exceeds ₹1,00,000, providing your landlord's PAN card is legally mandatory.

Generate Free Rent Receipts

If your landlord does not provide official rent receipts, you can generate them yourself and have your landlord sign them. Generate Free HRA Rent Receipts instantly using our tool. You can also calculate your exact tax savings using our HRA Exemption Calculator.

AH

Abdulla Harris

Verified Legal Editor

Building Owner & Landlord Legal Specialist

TenantsFlo Legal Operations

Abdulla Harris is an active property owner and rental operations specialist. He leads legal and compliance editorial at TenantsFlo, focusing on Indian Rent Control Acts, Model Tenancy Act 2021 implementations, state-level stamp duty guidelines, and automated landlord workflows.

Reviewed under MTA 2021 & Income Tax Sec 10(13A)• Updated Sep 2026• 100% Fact-Checked

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Frequently Asked Questions

Can I claim HRA if I live with my parents?

Yes, you can claim HRA by paying rent to your parents. You must have a formal rent agreement and transfer the rent to their bank account. However, your parents must show this rent as income in their tax returns.

Is landlord PAN mandatory for HRA?

If the total rent paid during the financial year exceeds ₹1,00,000 (i.e., more than ₹8,333 per month), the PAN of the landlord is mandatory.

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