Tax guide

How to Claim HRA Exemption

Complete guide to understanding and claiming House Rent Allowance exemption with proper documentation.

Published 2024-05-20

Check Eligibility

Understand if you qualify for HRA exemption.

  • You receive HRA as part of salary
  • You live in a rented accommodation
  • You pay rent for the accommodation
  • The rented house is not owned by you

Calculate HRA Exemption

HRA exemption is the minimum of three amounts.

  • Actual HRA received from employer
  • 50% of salary for metro cities / 40% for non-metro
  • Rent paid minus 10% of salary

Prepare Documents

Gather all required documents for HRA claim.

  • Rent receipts for each month (signed by landlord)
  • Rental agreement copy
  • Landlord PAN card (if rent > ₹1 lakh/year)
  • Bank statements showing rent payments

Submit to Employer

Provide documents to employer for tax exemption.

  • Submit Form 12BB with rent details
  • Attach rent receipts
  • Provide landlord PAN declaration (if required)
  • Submit rental agreement copy