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HRA Exemption Calculator

Calculate Your HRA Tax Exemption

Calculate the HRA exemption you can claim under Section 10(13A) of the Income Tax Act.

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HRA exemption is the minimum of the three conditions under Section 10(13A).

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HRA Exemption Formula

HRA exemption is the minimum of these three amounts:

1. Actual HRA received from employer
2. Rent paid minus 10% of (Basic + DA)
3. 50% of (Basic + DA) for metro cities
OR 40% for non-metro cities

HRA Exemption Rules

  • HRA exemption is available under Section 10(13A) of the Income Tax Act
  • Only available to salaried employees who receive HRA
  • You must actually pay rent to claim the exemption
  • Metro cities: Delhi, Mumbai, Chennai, Kolkata
  • Rent receipts required if annual rent exceeds ₹1 lakh
  • Landlord's PAN required if annual rent exceeds ₹1 lakh
  • Not available under the new tax regime (applicable only under old regime)

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Frequently Asked Questions

Common questions about HRA exemption in India

What is HRA exemption? −

HRA (House Rent Allowance) exemption is a tax benefit under Section 10(13A) of the Income Tax Act. It allows salaried employees who receive HRA as part of their salary and pay rent for accommodation to claim a portion of their HRA as tax-exempt.

How is HRA exemption calculated? −

HRA exemption is the minimum of three amounts: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary + DA, and (3) 50% of basic + DA for metro cities or 40% for non-metro cities. The lowest of these three is your exempt HRA.

Which cities are considered metro for HRA? −

For HRA exemption purposes, only four cities are classified as metro: Delhi, Mumbai, Chennai, and Kolkata. All other cities are considered non-metro, where the exemption is calculated at 40% of basic + DA instead of 50%.

Can I claim HRA if I live in my own house? +

No. HRA exemption requires you to actually pay rent for your accommodation. If you live in your own house or do not pay rent, the entire HRA received is taxable.

Is HRA exemption available under the new tax regime? +

No. HRA exemption under Section 10(13A) is only available under the old tax regime. If you opt for the new tax regime, you cannot claim HRA exemption.

Do I need rent receipts to claim HRA? +

Rent receipts are required if your annual rent exceeds ₹1 lakh. You also need your landlord's PAN if annual rent exceeds ₹1 lakh. It is good practice to keep rent receipts regardless of the amount.

Have more questions? Check our knowledge base or contact us.