What is house rent allowance (HRA)?
Reviewed by Ranga & Company
HRA: House rent allowance (HRA) is a part of salary paid towards rent. Under the old tax regime, salaried employees who pay rent can claim part of it as tax-free; the new regime does not allow the exemption.
At a glance
- Law
- Section 10(13A) with Rule 2A (1961 Act)
- Regime
- Old regime only
- Metro cities (50%)
- Delhi, Mumbai, Kolkata, Chennai
- Jodhpur
- Non-metro: 40% of salary limit
- Landlord PAN
- Required if rent exceeds ₹1 lakh a year
How the exemption is calculated
The exempt amount is the lowest of these three ('salary' means basic plus dearness allowance):
| Limit | Jodhpur example (basic ₹6 lakh, HRA ₹2.4 lakh, rent ₹2.4 lakh) |
|---|---|
| HRA actually received | ₹2,40,000 |
| Rent paid − 10% of salary | ₹2,40,000 − ₹60,000 = ₹1,80,000 |
| 40% of salary (non-metro) | ₹2,40,000 |
| Exempt (lowest) | ₹1,80,000; the remaining ₹60,000 of HRA is taxable |
Documents to keep
- Rent receipts or bank transfers to the landlord
- A rental agreement
- The landlord's PAN if annual rent is more than ₹1 lakh
No HRA in your salary?
Self-employed people, or employees whose salary has no HRA component, can claim up to ₹60,000 a year under section 80GG in the old regime, subject to conditions such as not owning a house in the same city.
Common mistakes
- Claiming HRA while filing under the new regime
- Paying rent in cash with no agreement or receipts
- Claiming HRA for a house you own and live in
Frequently asked questions
Can I claim HRA in the new tax regime?
No. The HRA exemption is available only under the old regime. Compare both regimes before choosing.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent, your parents own the house, and they report the rent as their income. Keep an agreement and bank transfers as proof.
Is Jodhpur a metro city for HRA?
No. Only Delhi, Mumbai, Kolkata and Chennai count as metros for HRA, so the limit for Jodhpur is 40% of salary.
Related terms
Get help with this
Related services
From the blog
- GuidesMissed the ITR Deadline? How to File a Belated Return Before 31 December 2026Missed the 31 July or 31 August deadline for AY 2026-27? File a belated return by 31 December 2026. Late fee, regime rules, losses and the steps, explained.
- GuidesGot an Income Tax Notice? What Each Notice Means and How to ReplyA plain-English guide to income tax notices under sections 143(1), 139(9), 142(1), 143(2), 148A and 245: what each means, how long you have and how to reply.
- GuidesThe Income-tax Act, 2025: What Changed From 1 April 2026The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. What the tax year means, what stays the same and how your next ITR is affected.
Talk to a Jodhpur tax expert today
Send your documents on WhatsApp or book a free 15-minute call. We reply the same working day.