How to Claim HRA While Filing ITR: Formula, Schedule and Proof

Last updated: October 2026

House rent allowance (HRA) is partly exempt from tax, and you can claim HRA while filing ITR (income tax return) by entering the exempt amount under Section 10(13A) in the salary schedule. Only the old regime allows it.

• Formula: the smallest of HRA received, rent minus 10% of basic pay, and 40% or 50% of basic pay
• Cities at 50%: 4 for financial year (FY) 2025-26, and 8 from FY 2026-27
• Added from FY 2026-27: Bengaluru, Hyderabad, Pune and Ahmedabad
• Proof: rent receipts, and the landlord's Permanent Account Number (PAN) above Rs. 1 lakh of rent a year
• Example: the same Bengaluru renter gets Rs. 2,40,000 at 40% and Rs. 2,76,000 at 50%

Check which financial year your return covers before you pick the 40% or the 50% cap. Then keep your proofs; the portal asks for none.

Enter the exempt amount in the exempt allowances part of the salary schedule, under item 10(13A). Six steps cover the claim.

1. Confirm that your salary includes HRA, that you paid rent and that you use the old regime.
2. Collect your payslips, rent receipts and the landlord's PAN.
3. Compute the exemption with the formula below, on annual amounts.
4. Open the salary schedule in your return, and go to the exempt allowances under Section 10.
5. Select 10(13A) and enter the exempt amount.
6. Keep the proofs. You upload nothing.

If the employer's Form 16 already shows the exemption, check that the figures agree.

The exemption is the smallest of 3 figures, worked out on annual amounts.

Last reviewed: October 2026

The part of HRA above the exemption is taxable salary. The rules sit in Section 10(13A) of the Income-tax Act, 1961 and Rule 2A. Both limits use basic pay plus dearness allowance, which is the cost-of-living part of pay.

Four cities get 50% for FY 2025-26, and eight get it from FY 2026-27. Rule 279 of the Income-tax Rules, 2026 widens the list.

FY 2025-26 falls under the Income-tax Act, 1961. FY 2026-27 falls under the Income-tax Act, 2025. Guides that date the change to Budget 2025 are imprecise, because the change sits in the Rules of 2026. Check the rule text on the Income Tax Department's site.

Keep rent receipts, the rent agreement and proof of payment. Give your landlord's PAN when the rent is above Rs. 1 lakh a year, which is Rs. 8,333 a month.

Employers collect your rent details through a declaration. Form 12BB was the old form, and Form 124 replaces it from 1 April 2026, according to Tata Capital and EZHRM. You can still claim HRA in the return if you did not file the declaration.

The new regime does not allow HRA. Compare both regimes with your rent before you choose, using the guide to saving tax on a salary above 12 lakh.

Consider Arjun, a 33-year-old engineer in Bengaluru with a household income of Rs. 1.6 lakh a month and a CIBIL score of 761. His basic pay plus dearness allowance is Rs. 6,00,000 a year, he receives Rs. 3,00,000 of HRA, and he pays Rs. 3,36,000 of rent.

The 50% cap adds Rs. 36,000 of exemption, which saves Rs. 11,232 in the 30% slab with cess. Arjun enters Rs. 2,40,000 for FY 2025-26.

Rent paid does not raise your eligibility with Bajaj Finance, but your net income and existing EMIs do. If you plan to buy where you rent, plan the Equated Monthly Instalment (EMI) against your net income.

Last reviewed: October 2026

Approval timelines can extend where income documents need cross-checking, and minimum income thresholds can differ by city. Check your Home Loan Eligibility and test the EMI with the home loan EMI calculator.