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HRA Exemption Calculator

Calculate your House Rent Allowance (HRA) tax exemption for India income tax. Shows exact exempt amount, taxable HRA, and monthly tax savings — for metro and non-metro cities.

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Enter your HRA details

Tax-exempt HRA under Section 10(13A) — old tax regime.

DA counts as basic for HRA exemption if it forms part of retirement benefits. Leave 0 if you are a private sector employee without DA.

HRA exemption breakdown

Enter salary, HRA, and rent details above.

FAQ

HRA exemption questions answered

What is HRA exemption under the Indian Income Tax Act?

Under Section 10(13A) of the Income Tax Act, the HRA you receive from your employer is partially or fully exempt from tax, provided you are paying rent for accommodation. The exempt amount is the minimum of three conditions.

How is HRA exemption calculated?

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

Which cities are considered metro for HRA purposes?

Mumbai, Delhi (NCR), Chennai, and Kolkata are classified as metro cities for HRA purposes. All other cities are non-metro. Metro employees get 50% of basic salary vs 40% for non-metro.

Can I claim HRA exemption if I live with my parents?

Yes, if you pay rent to your parents by bank transfer and they declare it as income in their tax return. Verbal rent is not accepted — you need rent receipts and a formal rent agreement.

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 simplified tax regime, you cannot claim this exemption.

What documents do I need to claim HRA exemption?

You need rent receipts for each month, a rental agreement, and the landlord's PAN if annual rent exceeds INR 1 lakh. Submit these to your employer's HR/payroll team for TDS adjustment.

What if I am paying more rent than my actual HRA?

The HRA exemption is limited to actual HRA received — you cannot claim more than what your employer gives. If you pay high rent in a metro, consider negotiating a higher HRA component in your salary structure.

Can I claim HRA and home loan interest both?

Yes, if you own a property (home loan) in a different city from where you are renting for work, you can claim both HRA exemption and home loan interest deduction under Section 24(b).