HRA Exemption Calculator — Section 10(13A)
Work out exactly how much of your House Rent Allowance is tax-free, which of the three rules is limiting it, and what that exemption is worth in rupees at your slab rate. Uses the correct definition of “salary” — basic + DA, not gross CTC — which is where most online HRA calculators go wrong.
Monthly figures
₹6,00,000 a year
Private-sector employees usually enter 0 here.
₹3,00,000 a year — landlord PAN required
Metro = Delhi, Mumbai, Kolkata, Chennai only.
Annual HRA exemption
₹2,40,000
Limited by: rent paid minus 10% of salary
Tax saved per year
₹72,000
Taxable HRA
₹0
Exemption per month
₹20,000
Salary for HRA (basic+DA)
₹6,00,000
Annual rent paid
₹3,00,000
Annual HRA received
₹2,40,000
The three limits — your exemption is the smallest
This is the whole of Rule 2A. Seeing which line binds tells you exactly what to change if you want a bigger exemption.
1. Actual HRA received
₹2,40,000
2. Rent paid − 10% of salary
← this is your exemption
₹2,40,000
3. 50% of salary
₹3,00,000
How the exemption moves with your rent
| Monthly rent | Annual exemption | Tax saved |
|---|---|---|
| ₹12,500 | ₹90,000 | ₹27,000 |
| ₹18,750 | ₹1,65,000 | ₹49,500 |
| ₹25,000 | ₹2,40,000 | ₹72,000 |
| ₹31,250 | ₹2,40,000 | ₹72,000 |
| ₹37,500 | ₹2,40,000 | ₹72,000 |
| ₹50,000 | ₹2,40,000 | ₹72,000 |
Notice where the figure stops rising — past that point extra rent buys you no extra exemption, because another limit has taken over.
What counts as “salary” for HRA
This single definition decides your answer, and it is narrower than people assume. For Rule 2A, salary means:
- Basic pay, plus
- Dearness Allowance, but only the portion that forms part of retirement benefits, plus
- Commission calculated as a fixed percentage of turnover.
It does not include your gross CTC, bonus, overtime, employer PF contribution, LTA or any other allowance. Entering gross salary instead of basic is the most common mistake, and it inflates the 40/50% limit so the calculator reports an exemption you cannot actually claim.
Old regime versus new regime — run the comparison
Your HRA exemption of ₹2,40,000 saves ₹72,000 at a 30% slab. That is real money, but the new regime offers a ₹75,000 standard deduction, wider slabs and nil tax up to ₹12 lakh of taxable income.
The old regime only wins once your total deductions — HRA plus 80C plus 80D plus home loan interest — clear roughly ₹3.5 to ₹4 lakh. HRA alone rarely gets you there unless rent is high relative to salary. Use the income tax calculator to settle it with your actual numbers rather than a rule of thumb.
Documentation you must keep
- Rent receipts for every month, signed by the landlord.
- Landlord's PAN if annual rent exceeds ₹1,00,000. This is not optional.
- A rent agreement, particularly if the landlord is a family member.
- Bank transfer proof. Cash rent to a relative is the first thing scrutiny notices.
When rent goes to your parents
It is legal and common, but it has to be a real transaction. The property must be owned by the parent, the money must actually move by bank transfer, and the parent must report it as house property income — where they still get the 30% standard deduction on it. If the parent is in a lower slab than you, the family pays less tax overall. Fabricated arrangements with no money trail are treated as evasion, with penalty.
Section 80GG if you get no HRA
Self-employed people and salaried employees whose package has no HRA component can claim under Section 80GG instead: the least of ₹5,000 a month, 25% of total income, or rent paid minus 10% of total income. It needs Form 10BA and is also old-regime only. Neither you, your spouse nor your minor child may own residential property in the city where you work.
Frequently asked questions
Short, specific answers — no sign-up, no sales pitch.
How is HRA exemption calculated?
Under Rule 2A the exemption is the LEAST of three figures: (1) actual HRA received, (2) rent paid minus 10% of salary, (3) 50% of salary in a metro or 40% elsewhere. "Salary" means basic pay plus dearness allowance forming part of retirement benefits plus commission on turnover — not your gross CTC.
Can I claim HRA under the new tax regime?
No. HRA exemption under Section 10(13A) is only available in the old tax regime. Since the new regime became the default from FY 2023-24, you must actively opt for the old regime to claim it, and then weigh that against the ₹75,000 standard deduction and wider slabs you give up.
Which cities count as metro for HRA?
Only four: Delhi, Mumbai, Kolkata and Chennai. They qualify for the 50% limit. Bengaluru, Hyderabad, Pune and every other city get 40%, no matter how expensive they are. This is a tax rule, not an economic one.
Do I need the landlord PAN to claim HRA?
Yes, if your annual rent exceeds ₹1,00,000. Below that, rent receipts are enough. Without the PAN your employer must deny the exemption at source, though you can still claim it when filing if you have genuine proof.
Can I claim HRA while paying rent to my parents?
Yes, and it is perfectly legal if the arrangement is real — your parents must own the property, you must actually transfer the rent, and they must declare it as income in their return. Pay by bank transfer and keep receipts. A paper-only arrangement is treated as evasion.
Can I claim HRA and a home loan deduction together?
Yes. They are separate sections and address different facts. If you own a house in one city on a home loan and genuinely rent in another city for work, you can claim Section 24(b) interest on the owned property and HRA on the rented one.
What if I do not receive HRA from my employer?
Then Section 10(13A) does not apply, but Section 80GG may. It allows the least of ₹5,000 a month, 25% of total income, or rent paid minus 10% of total income — again only under the old regime, and only if neither you nor your spouse owns a house in that city.
Related free calculators
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Old vs New Regime
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In-Hand Salary Guide
How HRA fits into the rest of your pay.
In-Hand Salary Calculator
Where HRA sits inside your full pay structure.
Educational tool, not tax advice. Confirm your position with a chartered accountant before filing.