HRA Calculator
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A). Enter basic salary, actual HRA received, rent paid, and city type to find the tax-free HRA amount and taxable portion.
Salary & Rent Details
Tax-Free HRA (annual)
₹1.2 Lakh
Taxable HRA: ₹1.2 Lakh
Exemption limits — minimum of the three
Monthly tax-free HRA
₹10,000
Monthly taxable HRA
₹10,000
How It Works
HRA (House Rent Allowance) is a salary component that salaried employees who live in rented accommodation can claim as a tax exemption under Section 10(13A) of the Income Tax Act. The exempt amount is the MINIMUM of three values: (1) Actual HRA received from employer; (2) 50% of Basic Salary (for metro cities: Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro; (3) Actual rent paid minus 10% of Basic Salary. Self-employed individuals cannot claim HRA exemption under Section 10(13A), but can claim rent deduction under Section 80GG (subject to limits). If you pay rent above ₹1 lakh/year, the landlord's PAN must be submitted to your employer.
Formula
HRA Exempt = min(Actual HRA received, 50%/40% of Basic Salary, Rent Paid − 10% of Basic Salary). Taxable HRA = Actual HRA − Exempt amount.
Frequently Asked Questions
What is HRA and who can claim it?
HRA (House Rent Allowance) is a salary component provided by employers to help employees meet rental expenses. Only salaried employees who receive HRA as part of their CTC AND actually pay rent for their accommodation can claim the Section 10(13A) exemption. Self-employed individuals and salaried employees living in their own property cannot claim this exemption. The exemption is NOT available under the New Tax Regime.
How is HRA exemption calculated?
The tax-exempt HRA = minimum of: (1) Actual HRA received; (2) 50% of Basic Salary (metro cities) or 40% (non-metro); (3) Actual annual rent paid minus 10% of annual Basic Salary. The remaining HRA after this exemption is added to taxable income. Example: Basic ₹50,000/month, HRA ₹20,000/month, Rent ₹15,000/month, metro city. Limit1=₹20,000; Limit2=₹25,000; Limit3=₹15,000−₹5,000=₹10,000. Exempt=₹10,000/month.
What cities are considered metro for HRA purposes?
For HRA exemption, 'metro' cities are specifically: Delhi (NCR), Mumbai (including Thane, Navi Mumbai), Kolkata, and Chennai. The 50% Basic Salary limit applies to these four cities only. All other cities — including Bangalore, Hyderabad, Pune, Ahmedabad — are classified as non-metro, where the limit is 40% of Basic Salary. Despite their size, Bangalore and Hyderabad are not metro for HRA purposes.
Can I claim HRA if I pay rent to my parents?
Yes — you can pay rent to your parents and claim HRA exemption, provided: (1) You actually transfer the rent amount to your parents' bank account; (2) Your parents declare it as rental income in their ITR; (3) There is a valid rent agreement; (4) The property is actually owned by your parents (not you). This is a legally valid arrangement and commonly used in tax planning, but all transactions must be genuine and documented.
Is HRA available under the New Tax Regime?
No. HRA exemption under Section 10(13A) is NOT available if you opt for the New Tax Regime (introduced from FY 2020-21). The New Regime foregoes most exemptions and deductions in exchange for lower slab rates. If HRA + 80C + other deductions together exceed the tax savings from the new regime's lower rates, the Old Regime is better. Use our Income Tax Calculator to compare both regimes.
What if rent paid exceeds ₹1 lakh per year?
If your annual rent paid exceeds ₹1,00,000 (i.e., more than ₹8,333/month), you must provide your landlord's PAN to your employer for HRA exemption. Your employer will need this to report it correctly in Form 16. If the landlord does not have a PAN (e.g., elderly landlord), you can submit a declaration to that effect. Without PAN, TDS of 31.2% must be deducted from rent payments exceeding ₹2.4 lakh/year under Section 194IB.