Calculator
HRA Exemption
How much of your House Rent Allowance escapes tax under Section 10(13A).
dhanmetrics.com · Educational illustration only · Not investment advice
Annual HRA exemption · Section 10(13A)
₹2,40,000
Non-metro (40% of basic cap) · 100% of HRA exempt
All three rules — the smallest wins
Binding rule: Actual HRA received
What this means
Of your ₹2.4L annual HRA, ₹2.4L escapes tax — the rest gets added back to your taxable salary. The exemption is the smallest of three Section 10(13A) rules; right now it's the "Actual HRA received" rule that's capping you. HRA exemption is available only under the Old Regime — switching to New Regime forfeits it.
What if you…
Switched to metro status
₹2.4L
Paid ₹3.8L rent (+25%)
₹2.4L
Got ₹3.0L HRA (+25%)
₹2.4L
Educational illustration. Maintain rent receipts; for rent > ₹1L/yr you also need the landlord’s PAN.
Adjust your scenario
Type, drag, or tap a chip — the result on the right updates instantly.
Your salary & rent
All figures are annual. HRA exemption is only available in the Old Regime under Section 10(13A).
Use Basic + Dearness Allowance (DA) only — not gross CTC. Typically 35–50% of CTC.
Rent above ₹1,00,000/year needs landlord's PAN at filing time.
Only Delhi, Mumbai, Kolkata, Chennai count as metros for HRA. Bengaluru, Hyderabad, Pune are non-metros under this rule.
Worked example
Basic ₹50,000/mo, HRA ₹25,000/mo, rent paid ₹20,000/mo, metro city
Taxable HRA: ₹10,000/mo · Annual HRA exemption: ₹1,80,000
For someone in Mumbai or Delhi with ₹50,000 basic, ₹25,000 HRA and ₹20,000 rent, the exempt HRA is ₹15,000/month — the lowest of (actual HRA, 50% of basic, rent minus 10% of basic). That's ₹1.8 lakh of tax-free salary per year.
Metro rule applies; non-metros use 40% of basic instead of 50%.
Frequently asked questions
Real answers to the questions people search before using this calculator.
How is HRA exemption calculated under Section 10(13A)?
Exempt HRA is the lowest of: actual HRA received, 50% of basic salary (40% if non-metro), or rent paid minus 10% of basic salary. The remaining HRA is added to your taxable income. The calculator computes all three and picks the lowest automatically.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai qualify as metros for HRA — they get the 50% cap. Bengaluru, Hyderabad, Pune and all other cities are treated as non-metros at the 40% cap, even though their rents are now comparable to metros.
Can I claim HRA if I live in my parents' house?
Yes, if you actually pay rent to your parents and they declare it as rental income in their ITR. Transfer the rent via bank, keep a rent agreement, and ideally your parents should be in a lower tax bracket. The deduction is then fully valid.
Do I need to submit rent receipts to claim HRA?
For annual rent above ₹1 lakh you must submit rent receipts and the landlord's PAN to your employer. Below ₹1 lakh, receipts alone usually suffice. Always keep receipts and bank transfer proofs for at least 7 years in case of scrutiny.
Is HRA available under the New Tax Regime?
No. HRA exemption is one of the major benefits removed under the New Regime. If you have significant HRA savings, the Old Regime usually works out better even after the higher standard deduction in the New Regime.
Can I claim both HRA and home loan interest deduction?
Yes, if the situation is genuine — for example, you own a home in one city but work and pay rent in another. The Income Tax Department allows both Section 10(13A) HRA exemption and Section 24(b) home loan interest deduction in such cases.