Free Calculator · India · Updated May 2026

HRA Calculator, Section 10(13A) Exemption

Compute the lowest-of-three HRA exemption under Section 10(13A) of the Income-tax Act. Metro vs non-metro split. Old tax regime only, new regime does not allow HRA exemption.

HRA exemption under Section 10(13A) of the Income-tax Act is among the largest tax breaks for salaried employees in India, but only under the old tax regime. It is calculated as the lowest of three values: actual HRA received, 50% of basic for metros (40% for non-metro), and actual rent paid minus 10% of basic.

Result

HRA exemption (monthly)

₹15,000

Taxable HRA (monthly)

₹10,000

(a) Actual HRA received₹25,000
(b) 40% of basic₹20,000
(c) Rent − 10% basic₹15,000
Exemption = MIN(a, b, c)₹15,000

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Formula, lowest of three

  • (a) Actual HRA received from employer for the period.
  • (b) 50% of basic salary if living in a metro (Mumbai, Delhi, Kolkata, Chennai) or 40% of basic for any other city.
  • (c) Actual rent paid minus 10% of basic salary.
  • Exemption = MIN(a, b, c). Taxable HRA = (a) − Exemption.
  • Old tax regime only. New regime: HRA exemption is not available.

Worked example

Bengaluru employee (non-metro for HRA purposes), monthly basic Rs. 50,000, HRA Rs. 25,000, rent paid Rs. 20,000. (a) Actual HRA = 25,000. (b) 40% basic = 20,000. (c) Rent − 10% basic = 20,000 − 5,000 = 15,000. Exemption = min(25,000, 20,000, 15,000) = Rs. 15,000 / month. Taxable HRA = 25,000 − 15,000 = Rs. 10,000 / month.

FAQ

HRA Calculator, common questions

Only Mumbai, Delhi, Kolkata and Chennai are 'metro' for HRA purposes under Income-tax rules. Bengaluru, Hyderabad, Pune, Ahmedabad and others use the 40% non-metro rate, regardless of city size.
Yes for claim above Rs. 1,00,000 per year. PAN of landlord is also required above this threshold. For salaried employees, rent receipts are submitted to the employer for TDS calculation; without proof, the employer may not allow the exemption in TDS but you can claim while filing returns.
Permitted, pay rent via bank transfer with a formal rental agreement, parents declare the rent as income. The arrangement must be genuine; tax authorities scrutinise close-relative rent claims.
Yes, possible when you own a house in one city but rent in another for work reasons. Both can be claimed under their respective sections (HRA under 10(13A), home loan interest under Section 24 / 80EE / 80EEA).
No. The new tax regime under Section 115BAC removes most exemptions including HRA. If you have significant HRA + 80C + home-loan interest deductions, old regime may still be better; the calculator helps compare.
The exemption is calculated month-by-month based on the city of residence each month. Some months may use 50%, others 40%. Apportioning by month gives the most accurate annual exemption.
Yes if it is your actual residence and rent receipts are obtainable. Working professionals in PG / co-living and student hostels can claim HRA on the rent paid.

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