HRA Exemption Calculator

Free

Section 10(13A) of Income Tax Act

Calculate House Rent Allowance exemption. Compare actual HRA, rent-minus-10%, and metro/non-metro percentage to find your tax-exempt amount.

Input Parameters

Employee & Entity

As % of turnover, if applicable

50% of salary applies

Metro cities: Delhi, Mumbai, Kolkata, Chennai. W.e.f. 1 April 2026, Bengaluru, Hyderabad, Pune & Ahmedabad also classified as metro (Draft Income Tax Rules 2026).

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HRA Exempt (Monthly)

₹8,500

Taxable HRA (Monthly)

₹6,500

Section 10(13A) Breakdown

Exemption = lowest of the three components

Actual HRA Received
₹15,000
Rent − 10% of SalaryLowest

₹12,000 − 10% × ₹35,000

₹8,500
50% of Salary (Metro)
₹17,500
Salary (Basic + DA + Commission)₹35,000
Annual Summary
Annual HRA Received₹1,80,000
Annual Rent Paid₹1,44,000
Annual HRA Exemption₹1,02,000
Annual Taxable HRA₹78,000
Actual HRA

₹1,80,000

Rent − 10%

₹1,02,000

50% Salary

₹2,10,000

HRA Exemption Guidelines

Section 10(13A) — HRA Exemption

HRA exemption is the minimum of: (a) actual HRA received, (b) rent paid minus 10% of salary, (c) 50% of salary for metro cities or 40% for non-metro.

Salary Definition

Salary = Basic + Dearness Allowance + Commission (if % of turnover). Other allowances are excluded.

Metro Cities (50%)

Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.

Who Can Claim

  • Salaried employees receiving HRA as a salary component
  • Must be paying rent for residential accommodation
  • Available only under Old Tax Regime

Who Cannot Claim

  • Self-employed individuals (see Section 80GG instead)
  • Those living in own house or not paying rent
  • Those filing under New Tax Regime

Documentation Required

  • Rent receipts and rental agreement
  • Landlord PAN required if annual rent exceeds Rs 1,00,000
  • Form 12BB for claiming exemption
  • Bank transfer proof of rent payments

Section 80GG Alternative

For those not receiving HRA: deduction up to Rs 5,000/month (Rs 60,000/year) under old regime. Cannot claim both HRA and 80GG simultaneously.