🇮🇳 India
HRA Exemption Calculator (Section 10-13A)
The HRA exemption calculator estimates tax-free House Rent Allowance for salaried employees in India under Section 10(13A). Enter monthly basic salary plus DA, HRA received, rent paid, and city type to see all three statutory conditions side by side. The calculator identifies the minimum value, annual exemption, and taxable HRA so you can submit accurate rent declarations to your employer.
How to use
- Enter monthly basic salary plus DA for the period you paid rent.
- Enter monthly HRA received from your employer.
- Enter actual rent paid per month.
- Choose metro only for Delhi, Mumbai, Kolkata, or Chennai; other cities are non-metro for HRA rules.
- Calculate and use the lowest of the three conditions as the monthly exemption.
Formula
1. Actual HRA received
2. 50% of salary in metro or 40% in non-metro
3. Rent paid − 10% of salary
HRA exemption under Section 10(13A) is based on three values for the period during which rented accommodation is occupied. Salary generally means basic salary plus dearness allowance to the extent it forms part of retirement benefits, and turnover-based commission where applicable. The exemption is the least of actual HRA received, 50% of salary for specified metro cities or 40% for other places, and rent paid in excess of 10% of salary.
If rent paid is less than or equal to 10% of salary, the third condition becomes zero and no HRA exemption is available. If you live in your own house or do not actually pay rent, HRA is taxable. Employers may require rent receipts, rental agreement, landlord PAN where annual rent exceeds ₹1,00,000, and proof of payment before allowing exemption in payroll TDS.
Worked example
Basic plus DA is ₹50,000 per month, HRA is ₹25,000, and rent is ₹30,000 in a non-metro city.
Actual HRA is ₹25,000, 40% of salary is ₹20,000, and rent minus 10% of salary is ₹25,000. Monthly exemption is the minimum: ₹20,000.
Annual HRA exemption is ₹2,40,000 and taxable HRA is ₹60,000.
HRA examples for Indian salaries
| Monthly salary | Monthly HRA | Rent | City | Monthly exemption |
|---|---|---|---|---|
| ₹30,000 | ₹12,000 | ₹10,000 | Non-metro | ₹7,000 |
| ₹40,000 | ₹20,000 | ₹18,000 | Metro | ₹14,000 |
| ₹50,000 | ₹25,000 | ₹30,000 | Non-metro | ₹20,000 |
| ₹60,000 | ₹30,000 | ₹35,000 | Metro | ₹29,000 |
| ₹80,000 | ₹40,000 | ₹45,000 | Non-metro | ₹32,000 |
| ₹1,00,000 | ₹50,000 | ₹60,000 | Metro | ₹50,000 |
| ₹1,20,000 | ₹60,000 | ₹70,000 | Non-metro | ₹48,000 |
| ₹1,50,000 | ₹75,000 | ₹90,000 | Metro | ₹75,000 |
Documents for HRA claims
Employers commonly ask for rent receipts, lease agreement, landlord name, address, and PAN if annual rent exceeds ₹1,00,000. Bank transfer proof is useful when rent is large. If you pay rent to parents, keep a genuine agreement, payment trail, and their tax reporting aligned. Artificial rent claims can be questioned during assessment.
Using this result in India
This HRA Exemption Calculator (Section 10-13A) is designed as a planning and audit tool, not as a substitute for the original Indian document that controls the transaction. For tax pages, that controlling document may be the Income-tax Act, Finance Act, Form 16, Form 26AS, AIS, challan, or employer declaration. For loan and investment pages, it may be the bank sanction letter, mutual fund scheme document, policy statement, EPFO passbook, NPS statement, or small-savings notification. For state-level pages, it may be a state transport, registration, electricity, or revenue department order. Use the calculator to understand scale, direction, and line-item logic before you rely on the official document.
Indian financial decisions are sensitive to timing. A rate that is correct for FY 2024-25 may not be correct for FY 2025-26. A monthly salary figure may not include bonus, arrears, reimbursements, or employer contributions. A property or vehicle quote may include charges that are negotiable, optional, or state-specific. A bank rate may be floating and linked to an external benchmark. Re-run the calculator when any input changes, and compare at least three scenarios: conservative, expected, and high-cost or low-return.
When the output is a large rupee amount, read it in both exact Indian notation and practical language. ₹10,00,000 is 10 lakhs, ₹1,00,00,000 is 1 crore, and small percentage changes can move the result by many lakhs on long tenures or high-value purchases. Keep screenshots or downloaded statements from the official portal, preserve invoices and receipts, and reconcile calculator output with the final bill, return, or statement before making a payment, filing a return, or signing a contract.
If you share the result with a family member, accountant, lender, employer, dealer, or broker, share the inputs too. Most disagreements come from different assumptions, not from the arithmetic.
FAQ
Can I claim HRA in the new tax regime?
HRA exemption is generally not available under the new regime for salaried individuals. It is an old-regime exemption.
Which cities count as metro for HRA?
For HRA, metro typically means Delhi, Mumbai, Kolkata, and Chennai. Other cities are treated as non-metro.
Is landlord PAN required?
Employers generally require landlord PAN if annual rent exceeds ₹1,00,000.
Can I claim HRA while paying rent to parents?
It may be possible if the arrangement is genuine, rent is actually paid, and parents report rental income where applicable.
What if rent is less than 10% of salary?
Then the rent-minus-10% condition is zero or negative, so HRA exemption is not available.
Important notes for India
- HRA exemption is an old-regime benefit; it is generally not allowed in the new regime.
- Metro for HRA means Delhi, Mumbai, Kolkata, and Chennai, not every large Indian city.
- Maintain rent receipts, agreement, and payment proof, especially for high rent claims.
- Landlord PAN is commonly required by employers when annual rent paid exceeds ₹1,00,000.