How to Claim HRA While Filing ITR: Eligibility, Calculation & Documents
60-Second Summary
- HRA is one of the highest value exemptions available to salaried individuals, but only if you claim it correctly.
- Most people either miss it entirely, calculate it wrong, or lose it due to missing documents.
- The exemption amount is not fixed; it depends on your salary, your city, and how much rent you actually pay.
- There are specific conditions under which HRA cannot be claimed at all, even if it is part of your salary.
- The steps to claim it on the Income Tax portal are straightforward, but the order in which you do them matters.
Your salary slip shows HRA every month, but most people have no idea if they are either claiming it wrong or not claiming it at all. HRA is one of the most underused exemptions available to salaried individuals, and a small miscalculation or missing document is enough to get your claim rejected by the Income Tax Department.
Knowing how to claim HRA in ITR correctly can save you thousands in tax every year. This blog walks you through the exact steps, the right documents, and the mistakes you must avoid before you file.
What is House Rent Allowance (HRA)?
The House Rent Allowance (HRA) exemption is an allowance given by the employer to the employee to cover the cost of rented accommodation. The employee receives HRA as part of the CTC. This exemption is only available under the old tax regime.
Under Section 10(13A) of the Income Tax Act, a portion of this HRA is exempt from tax if:
- You are a salaried individual living in a rented house.
- Receive HRA as part of your salary package, including basic salary, allowance, and added benefits.
- You choose to file under the old tax regime.
How is HRA Exemption Calculated?
This rule comes from Rule 2A of Income Tax Rules, which works along with Section 10(13A). The HRA calculation uses Basic + DA, not your CTC or gross salary. If you are unsure how your salary is structured, check this first:
Figure | Rules | How to Calculate |
1 | Actual HRA received | Check your salary slip or Form 16 |
2 | 50% of Basic+DA if you live in a metro city | Metro cities: Delhi, Mumbai, Kolkata, Chennai |
3 | 40% of Basic+DA if you live in a non-metro city | All cities other than the metro cities, such as Pune or Chandigarh |
4 | Actual rent paid minus 10% of Basic+DA | Annual rent- 10% of (Basic + DA) |
Situations where HRA cannot be claimed. Here are the 3 conditions where HRA is not exempt:
- If you opt for the new tax regime
- If you don’t pay the rent
- If HRA is not part of the salary
Not sure which regime is better for you? Read our detailed guide on old vs new tax regime before you decide.
Documents to Keep Ready When Claiming HRA
There is no obligation to submit all the supporting documents along with the ITR. But in case of any notice from the IT Department, these are the documents that you will need:
- Monthly Rent Receipts signed by your landlord.
- Rent Agreement Although it is not mandatory to submit, you should keep it in case the IT Department asks for proof.
- Bank Payment statement or UPI payment screenshot showing monthly rent payments made to your landlord.
- Salary slip to prove that HRA is part of your salary and shows the exact amount received from your employer every month.
- PAN card of the landlord is only needed when your annual rent is more than ₹1,00,000.
- Form 16 Part B is issued by your employer; it shows the exact HRA exemption amount excluded from your taxable salary under Section 10(13A), serving as the primary proof of your HRA claim.
- Make sure your rent agreement follows the latest rent agreement rules to avoid any issues during verification
Not Sure Which Documents You Need for HRA? Speak to a CA Now
Step-by-Step: How to Claim HRA While Filing Returns
Follow these steps to avoid any missteps in claiming HRA:
Step 1: Log in and select the correct tab
Log in to the incometax.gov.in. You will find two separate tabs. Tab 1 is for the Income Tax Act 1961, and Tab 2 is for the Income Tax Act 2025, which will apply from FY 2026-27 onwards.
Step 2: Select the Old Tax Regime and Choose the Right ITR Form Tab
On the dashboard, click e-File, select Income Tax Returns, then click File Income Tax Return. Select the AY 2025-26; this is the correct assessment year for the income earned in the year 2024-25.
Then select the old tax regime. For the ITR form, if you are a salaried person, use ITR-1; if you have capital gains or income from multiple employers, use ITR-2.
Step-3: Enter Your Salary Details
Go to the Gross Total Income Tab and click on Income from Salary. Enter your salary details as per Section 179(1), 17(2), or 17(3). All these figures are available in your Form 16. Enter these numbers as shown in your Form 16.
Step-4: Add HRA Exemption Under Section 10
Scroll down to the allowance exempt under Section 10. Click Add Another and select Section 10(13A). You will notice the amount column is highlighted and disabled. This is not an error; a message will appear asking you to fill schedule 10(13A) separately.
Step-5: Fill Schedule 10(13A)
A new schedule titled "Schedule 10(13A) House Rent Allowance" will automatically appear on the page. Fill in these fields:
- City Type, such as Kolkata, Delhi, or Aizawl.
- Actual HRA received from your employer.
- Actual rent paid to your landlord.
- Basic Salary and Dearness allowance.
- Percentage of salary, for example, 50% of Basic + DA (only if DA forms part of your retirement benefits) if metro city, and 40% of Basic + DA if non-metro city.
Step-6: Verify, file, and E-Verify Your Return Before July 31
Once you complete Schedule 10(13A), the portal automatically calculates the exempt HRA and fills it into the main salary section. Before you submit:
- Cross-check the auto-filled figure against your Form 16
- If the numbers do not match, go back and recheck your entries in Schedule 10(13A)
- E-verify within 30 days of filing and make sure you are aware of the last date to file ITR to avoid penalties.
👉 Note: You do not upload rent receipts, salary slips, or any HRA documents while filing. The portal does not ask for them. Keep all documents for at least six years from the relevant assessment year in case of a notice.
Example of How You Can Calculate HRA
Assume a person with the basic salary of ₹40,000 per month, receives HRA of ₹20,000 per month with actual rent of ₹18,000/month and lives in a non-metro city.
This is how the HRA will be calculated:
Rule | Calculation | Amount |
Actual HRA received | As per the salary slip | ₹20,000 |
40% of Basic + DA | 40% * ₹40,000 | ₹16,000 |
Rent paid minus 10% of Basic+DA | ₹18,000 – ₹4,000 | ₹14,000 |
The amount that is least out of these three figures will exempt HRA, here that is ₹14,000/month, and the rest of the income will be taxed.
Common Mistakes to Avoid while Claiming HRA
HRA cannot be claimed under the new tax regime. Switch to the old tax regime before you start the process of filing.
Always get a signed rent receipt every month, regardless of cash payment or online payment methods. Without receipts, you have no proof to support your HRA claim.
If your annual rent is over ₹1 lakh and your landlord’s PAN is missing, your employer may not process the exemption.
The HRA calculation uses Basic + DA, not your CTC or gross salary. Using the wrong figure overstates your exemption and can attract a notice.
Rent paid to a spouse is not accepted by the Income Tax Department. Rent paid to parents is accepted if it is genuine and properly documented.
If you switched jobs mid-year or your employer simply missed it, HRA may not appear in your Form 16. You can still claim ITR without Form 16.
How DigiLawyer Can Help You With Claiming HRA
Whether you are unsure about your HRA calculation, missing documents, or just want a professional to handle the ITR filing, DigiLawyer has you covered.
ITR Filing: File directly through DigiLawyer. Enter your PAN and get started. No paperwork, no office visits.
CA Consultation: Not sure your HRA calculation is right? Talk to a CA who specializes in ITR and taxation, starting at ₹50 for 1 minute.
Tax Planning: Our tax planning team of experts' guidance helps you maximize deductions and reduce your tax liability before you file.
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Ongoing Support: From document collection to post-filing queries, our team is available throughout the course.
Frequently Asked Question
The exempt amount is the lowest of three: the actual HRA received, 50% or 40% of basic salary, depending on your city, or the actual rent paid minus 10% of basic salary.
Yes. HRA eligibility is based on your salary structure and rent paid, not your other sources of income. Your investment income does not affect your HRA claim.
No. HRA is an exemption for rent paid on a house you live in. A home loan deduction under Section 24B is for interest paid on a loan for a house you own.
Not necessarily, but it must be genuine. You need a proper rent agreement, monthly rent receipts, and proof of bank transfer. Your parents must also declare that rent as their income.
No. If your annual rent exceeds ₹1 lakh, your landlord's PAN is mandatory. Without it, you cannot claim the HRA exemption for that amount.
Yes. You can still claim HRA directly while filing your ITR even if your employer did not account for it in Form 16.
You can only claim HRA for the rent you personally pay. Divide the total rent by the number of tenants, claim your share, and keep your individual rent receipts as proof.
- What is House Rent Allowance (HRA)?
- How is HRA Exemption Calculated?
- Documents to Keep Ready When Claiming HRA
- Step-by-Step: How to Claim HRA While Filing Returns
- Example of How You Can Calculate HRA
- Common Mistakes to Avoid while Claiming HRA
- How DigiLawyer Can Help You With Claiming HRA
- Frequently Asked Question
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