How much of your HRA is actually tax-free?

How is HRA exemption calculated?

The exempt portion is the minimum of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary + DA, and (3) 50% of basic + DA in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere. Whatever HRA remains above the exemption is taxable as salary.

Does HRA exemption apply in the new tax regime?

No — HRA exemption is available only under the old regime. If you claim significant HRA, that's often a major factor in whether the old regime beats the new one for you; compare both in the Tax calculator.

Do I need rent receipts or the landlord's PAN?

Employers typically require rent receipts to process HRA exemption in payroll, and the landlord's PAN is mandatory when annual rent exceeds ₹1,00,000. Paying rent to a parent is legal if actually paid and declared in their income.

Can I claim HRA and a home loan deduction together?

Yes, in genuine cases — for example, owning a home in one city (claiming home loan interest under Section 24) while renting in another city for work (claiming HRA). Both on the same property in the same city generally doesn't hold up.

Worked example: Basic+DA ₹6,00,000, HRA received ₹2,40,000, rent ₹3,00,000, metro: the three tests give ₹2,40,000 / ₹2,40,000 (3,00,000 − 60,000) / ₹3,00,000 — minimum is ₹2,40,000, so the entire HRA is exempt and taxable HRA is zero.