HRA Calculator
Calculate your House Rent Allowance exemption under Section 10(13A)
HRA Exemption (Tax-Free)
₹0
Exemption = least of these three:
1. Actual HRA received₹0
2. Rent paid − 10% of Basic₹0
3. 50% of Basic Salary₹0
What is HRA Exemption?
House Rent Allowance (HRA) is a component of your salary paid by your employer to cover rent. Under Section 10(13A) of the Income Tax Act, a part of your HRA is exempt from tax if you live in rented accommodation. This exemption is available only under the Old Tax Regime.
How HRA Exemption is Calculated
The exempt HRA is the least of the following three amounts:
1. Actual HRA received from employer
2. Rent Paid − 10% of (Basic Salary + DA)
3. 50% of Basic Salary (Metro cities)
or 40% of Basic Salary (Non-Metro cities)
Whichever of these three is smallest becomes your tax-exempt HRA. The remaining HRA is added to your taxable income.
Metro vs Non-Metro
- Metro cities (Delhi, Mumbai, Kolkata, Chennai): 50% of basic salary is used.
- Non-metro cities (all others, including Bangalore, Hyderabad, Pune): 40% of basic salary is used.
Frequently Asked Questions
Can I claim HRA 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 Regime, your entire HRA is taxable.
Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA for rent paid to parents if they own the house and you genuinely pay rent. Your parents must declare this rent as income in their tax return. Keep rent receipts and, ideally, a rent agreement and bank transfer proof.
Do I need a PAN of my landlord?
If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer to claim the HRA exemption.
Can I claim both HRA and home loan benefits?
Yes, in certain cases. If you own a house in one city but live on rent in another city for work, you can claim both HRA exemption and home loan interest deduction under Section 24.
What if I don't receive HRA in my salary?
If HRA is not part of your salary, you can still claim a deduction for rent paid under Section 80GG, subject to limits. This HRA calculator applies only when HRA is a salary component.