HRA Calculator

City-wise HRA Exemption Guide

For tax exemption purposes, the Income Tax Department classifies Indian cities into Metro and Non-Metro. Metro cities receive a 50% basic salary exemption allowance, whereas all other cities receive 40%:

Important PAN Card & Proof Requirements

To successfully claim HRA tax exemptions, you must comply with standard documentation guidelines:

• Landlord PAN Card: If your total annual rent paid exceeds ₹1,00,000 (approx. ₹8,333 per month), providing the landlord's Permanent Account Number (PAN) is mandatory for tax auditing.
• Rent Agreement: A valid, signed lease or rent agreement outlines the terms of your tenancy and is the primary proof of rent.
• Rent Receipts: Keep monthly rent receipts signed by your landlord, especially for cash payments. For bank transfers, bank account statements are also valid secondary evidence.

How to Claim HRA if Employer Doesn't Allow It

If you missed submitting rent proofs to your employer on time, you can still claim HRA tax exemption directly when filing your Income Tax Return (ITR). Recalculate your taxable salary income by subtracting the eligible HRA exemption and enter the adjusted taxable income in the ITR portal.