HRA Calculator
Calculate the House Rent Allowance exemption under Section 10(13A) of the Income Tax Act. Works for both metro (50% basic) and non-metro (40% basic) cities.
🇮🇳All amounts in ₹ INR · India tax law · FY 2025–26
HRA inputs (monthly)
Annual HRA received
₹2,40,000
HRA exempt (tax-free)
₹1,68,000
HRA taxable
₹72,000
What is HRA exemption?
House Rent Allowance is a salary component employers pay to help cover rent. Under Section 10(13A) of the Income Tax Act and Rule 2A, part of the HRA is exempt from tax — provided you actually pay rent for accommodation you occupy. The exemption is only available under the old tax regime; the new regime does not allow it.
The HRA exemption formula
Exemption is the least of these three amounts:
min(
1) Actual HRA received,
2) Rent paid − 10% of (Basic + DA),
3) 50% of (Basic + DA) for metros / 40% for non-metros )Worked example
Priya works in Mumbai. Monthly basic + DA = ₹50,000, HRA component = ₹25,000, rent paid = ₹22,000.
- Actual HRA: ₹25,000
- Rent − 10% basic: ₹22,000 − ₹5,000 = ₹17,000
- 50% of basic (metro): ₹25,000
Least = ₹17,000/month → ₹2,04,000/year exempt. Taxable HRA = ₹8,000/month → ₹96,000/year added to salary.
Documents to claim HRA
- Rent receipts (monthly) signed by the landlord.
- Rental agreement (recommended for rent > ₹8,333/month).
- Landlord PAN — mandatory if annual rent > ₹1L. Otherwise, landlord PAN declaration in Form 60.
- TDS at 5% u/s 194-IB if monthly rent > ₹50,000.
Common errors
- Claiming HRA while staying in a self-owned house (not allowed).
- Forgetting to add DA (when DA forms part of retirement) to basic.
- Treating Bengaluru, Hyderabad, Pune as metros for HRA — only Mumbai, Delhi, Kolkata, Chennai are.
- Claiming HRA and home-loan interest on the same house in the same city. Cross-city is fine.
FAQ
Yes, if the arrangement is genuine: parents own the house, you actually pay rent (bank transfer), and they declare it as income. Get a rental agreement and keep receipts.
For HRA purposes, only Mumbai, Delhi, Kolkata and Chennai are 'metros'. Bengaluru, Hyderabad, Pune, Ahmedabad use 40%.
No. The new regime removes HRA exemption, 80C, 80D and most deductions in exchange for lower slab rates and ₹75,000 standard deduction.
You cannot claim under Section 10(13A). However, self-employed and salaried-without-HRA people can claim up to ₹5,000/month under Section 80GG instead.