Calculate your HRA tax exemption instantly using our free HRA calculator. Learn the 3 statutory rules u/s 10(13A), metro vs. non-metro limits, and parent rental options.
You are currently paying tax on ₹11,000 of your HRA.
50% multiplier for Delhi, Mumbai, Kolkata, Chennai
Saves substantial tax liability under the Old Regime.
According to Section 10(13A) of the Income Tax Act, HRA exemption is computed as the lowest of the following three statutory parameters:
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House Rent Allowance (HRA) is an integral salary component provided by employers to meet the rental accommodation expenses of employees. Under Section 10(13A) of the Income Tax Act, 1961, salaried individuals renting a home can claim tax exemptions on HRA, significantly reducing their overall taxable income.
[!IMPORTANT] Old Tax Regime Exclusive: HRA tax exemptions are only claimable under the Old Tax Regime. If you opt for the New Tax Regime, no HRA exemption can be claimed, as all standard deductions and exemptions under Chapter VI-A are removed.
Calculate your monthly or annual tax-exempt HRA in seconds:
By law, your tax-exempt HRA is calculated as the lowest of the following three statutory limits:
The excess HRA received above this minimum exempt amount is classified as Taxable HRA and is added directly to your taxable salary under "Income from Salaries".
Let:
H = Actual HRA receivedR = Actual Rent PaidB = Basic Salary + DAM = Multiplier (0.50 for Metro, 0.40 for Non-Metro)HRA Tax Exempt Amount = Minimum of [ H, (R - 0.10 * B), (M * B) ]
Taxable HRA = H - HRA Tax Exempt Amount
Below is a GFM comparison showcasing the HRA tax exemption for three different employees, each earning a monthly Basic Salary of ₹1,0,000 and receiving ₹40,000 monthly HRA, but paying different rent amounts in a Metro vs. Non-Metro:
| Employee Scenario | Monthly Rent Paid | Location | Actual HRA Received | Exemption Limit 2 (Rent - 10% Basic) | Exemption Limit 3 (Metro/Non-Metro Cap) | Final Tax-Exempt HRA (Monthly) | Taxable HRA (Monthly) |
|---|---|---|---|---|---|---|---|
| A (High Rent Metro) | ₹35,000 | Metro | ₹40,000 | ₹25,000 | ₹50,000 | ₹25,000 | ₹15,000 |
| B (Mod Rent Metro) | ₹20,000 | Metro | ₹40,000 | ₹10,000 | ₹50,000 | ₹10,000 | ₹30,000 |
| C (High Rent Non-Metro) | ₹35,000 | Non-Metro | ₹40,000 | ₹25,000 | ₹40,000 | ₹25,000 | ₹15,000 |
Claim HRA securely and avoid notices from the Income Tax Department by checking off these items:
House Rent Allowance (HRA) is an allowance paid by employers to cover rental housing costs. It is exempted from tax under Section 10(13A) of the Income Tax Act based on the minimum of three parameters: actual HRA received, rent paid minus 10% basic, and 40%/50% basic cap.
Yes. If you own a house (for which you pay home loan EMIs) but reside in another rented house in the same or a different city due to employment reasons, you can legally claim both HRA tax exemption and Section 24b home loan interest deduction simultaneously.
If your landlord does not possess a PAN card, you must obtain a signed declaration in Form 60 from them along with their contact details and address to submit to your employer.
No. To claim HRA tax exemption, you must actually pay rent for the residential accommodation you occupy. Living in your own house means you cannot pay rent, making the entire HRA component paid by your employer fully taxable.
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