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HRA Exemption Calculator

Calculate your HRA tax exemption under Section 10(13A) — minimum of 3 limits

tuneSalary & Rent Details (Monthly)
Basic Salary (Monthly ₹)
From your monthly salary slip
HRA Received from Employer (Monthly ₹)
HRA component in salary slip
Actual Rent Paid (Monthly ₹)
As per your rent agreement
City Type
Metro: Mumbai, Delhi, Bangalore, Chennai, Kolkata, Hyderabad

functions HRA Exemption Formula (Sec 10(13A))

Exemption = MINIMUM of:

(i) HRA received from employer

(ii) Actual rent paid − 10% of Basic

(iii) 50% of Basic (metro) or 40% of Basic (non-metro)

Monthly HRA Exemption
₹—
Enter salary and rent details
Annual HRA Exemption
₹—
Annual tax saving
Taxable HRA
₹—
HRA Received − Exemption
Tax Saving (30% bracket)
₹—
Annual saving estimate
10% of Basic (Monthly)
₹—
Threshold for limit (ii)
Effective Rent (After 10%)
₹—
Rent − 10% Basic
3 Limits Comparison (Monthly)
Limit Amount Status
(i) HRA Received
(ii) Rent − 10% of Basic
(iii) 50% of Basic
HRA Exemption (Minimum) ✓ Applied

What is HRA Exemption?

HRA (House Rent Allowance) is a salary component that can be partially or fully tax-exempt under Section 10(13A) of the Income Tax Act. The exemption is the minimum of three limits: actual HRA received, rent paid minus 10% of Basic salary, and 50% of Basic (metro) or 40% of Basic (non-metro).

This exemption is only available under the Old Tax Regime. Under the New Tax Regime, no HRA exemption is allowed. If you live in your own home or don't pay rent, the entire HRA is taxable. Always submit rent receipts to your employer for TDS deduction benefit.

lightbulb Example Calculation
Scenario: Basic ₹50,000/mo, HRA received ₹25,000, Rent paid ₹20,000, Metro city
1(i) HRA received = ₹25,000
2(ii) Rent − 10% Basic = ₹20,000 − ₹5,000 = ₹15,000
3(iii) 50% of Basic = ₹25,000 | Minimum = ₹15,000
✓ Monthly HRA Exemption = ₹15,000 | Annual = ₹1,80,000
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Frequently Asked Questions

HRA exemption under Section 10(13A) explained

Can I claim HRA exemption under the New Tax Regime?
No. HRA exemption under Section 10(13A) is only available in the Old Tax Regime. Under the New Tax Regime (default from FY 2023-24), no HRA exemption is allowed. If you choose the New Regime, your entire HRA received from your employer is taxable. This is one of the key reasons why salaried employees paying high rent may prefer the Old Regime.
Do I need to submit rent receipts to my employer?
Yes, if annual HRA exemption claim exceeds ₹1 lakh (rent paid exceeds ₹1 lakh per year), you must submit your landlord's PAN. Below ₹1 lakh annually, only rent receipts are sufficient. Your employer uses this to calculate TDS and allow HRA exemption during the year. If not submitted to employer, you can still claim it while filing ITR.
Which cities are classified as 'Metro' for HRA calculation?
Metro cities for HRA purposes (50% of Basic): Mumbai, Delhi, Kolkata, and Chennai. From a practical standpoint, many employers and ITR forms also treat Bangalore, Hyderabad, and Pune similarly, though strictly the 50% limit is only for the four original metros. Non-metro cities (all others): 40% of Basic applies for limit (iii).
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