Calculator · Income-tax Act §10(13A)
HRA Exemption Calculator
Calculate your House Rent Allowance tax exemption under §10(13A) of the Income-tax Act. The Act applies the minimum of three rules — we show all three and highlight which one applies to you.
HRA exempt from tax (per month)
₹20,000
taxable HRA · ₹0/month · ₹0/year
Three rules · §10(13A) · exempt amount = minimum
- HRA actually received₹20,000min
- Rent paid − 10% of basic₹21,000
- 50% of basic (metro)₹20,000min
Lowest of three = exempt amount = ₹20,000/month
The statute, plainly
Section 10(13A) of the Income-tax Act exempts House Rent Allowance from salary income — but only up to the minimum of three calculations.
The three rules:
- The actual HRA you received from your employer.
- The rent you actually paid, minus 10% of your basic salary.
- 50% of your basic salary if you live in a metro (Mumbai/Delhi/Chennai/Kolkata), 40% if non-metro.
The lowest of the three is your exempt amount. Anything above is taxable HRA, taxed at your slab rate.
Old tax regime only: HRA exemption applies if you’ve opted for the old tax regime. The new regime (default for FY 2025-26) does not allow HRA exemption.
Documentation: For rent above ₹1 lakh/year, you need your landlord’s PAN. For rent above ₹50,000/month, TDS @ 5% applies (Sec 194-IB).
Frequently asked
About HRA exemption.
Which cities qualify as 'metro' for HRA exemption?
Only four: Mumbai, Delhi, Chennai, and Kolkata. The Income-tax Act §10(13A) explicitly names these as metros for HRA purposes. Bangalore, Hyderabad, Pune, Ahmedabad and others — despite being major cities — count as non-metro for HRA. The exemption uses 40% of basic instead of 50% in these cities.
Can I claim HRA exemption in the new tax regime?
No. The new tax regime (default for FY 2025-26 unless you opt out) does not allow HRA exemption. You must choose the old regime to claim it. The trade-off: the new regime has lower slab rates but disallows most exemptions including HRA, 80C, 80D, and standard deduction beyond ₹75,000.
What documents do I need to claim HRA exemption?
Rent receipts for the entire claim period. If annual rent exceeds ₹1 lakh, you must also submit the landlord's PAN. For rent above ₹50,000 per month, you (the tenant) are required to deduct TDS at 5% under §194-IB of the Income-tax Act.
Can I claim HRA if I live with my parents and pay them rent?
Yes — but the arrangement must be genuine. You need to actually pay rent (via bank transfer is best, with receipts), your parents must declare the rent as income in their tax return, and you need a rental agreement. Income-tax officers have disallowed exemption in audit when the arrangement looked sham.
What if my HRA is structured as part of CTC but I don't pay rent?
Then your HRA is fully taxable. The exemption requires actual rent payment. If you live in company-provided housing or with parents without paying rent, the HRA in your salary structure is taxable at your slab rate.
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