HERO
Calculate your exact House Rent Allowance tax exemption under the Old Tax Regime. Find out how much HRA is tax-free, taxable, and how much tax you save.
Sec 10(13A)HRA Exemption Law
50% / 40%Metro / Non-Metro
Min of 3Calculation Rules
Old RegimeOnly Applicable
CALCULATOR
HRA Exemption Calculator
Enter your salary and rent details to calculate your tax-free HRA
⚠️
Old Tax Regime Only: HRA exemption under Section 10(13A) is available only if you opt for the Old Tax Regime. Under the New Regime, your entire HRA is fully taxable. If you don’t receive HRA, you may claim up to ₹60,000 under Section 80GG.
Salary Details
Basic pay as per payslip (excl. allowances)
Enter 0 if not applicable (private sector)
HRA component shown on your payslip
Total rent paid to your landlord
Location & Tax Details
Used to estimate tax savings
📊 HRA Exemption Breakdown
📐 Three-Rule Calculation (Minimum = Exempt)
Rule 1
Actual HRA Received
—
Rule 2
50%/40% of Basic+DA
—
Rule 3
Rent Paid − 10% of Basic+DA
—
📋 HRA SUMMARYMonthly
Total HRA Received—
✅ HRA Exempt (Tax-Free)—
❌ HRA Taxable—
💰 Total HRA Exemption (Annual)—
💸 Taxable HRA (Annual)—
—% of HRA Exempt
—Estimated Tax Saved/Year
—Monthly Tax Benefit
INFO SECTIONS
HRA Exemption – Complete Guide
Everything about House Rent Allowance tax exemption under Section 10(13A) for FY 2026–27
🏠What is House Rent Allowance (HRA)?
House Rent Allowance (HRA) is a component of salary paid by employers to help employees cover the cost of renting accommodation. It is governed by Section 10(13A) of the Income Tax Act, 1961, read with Rule 2A of Income Tax Rules.
HRA is partially or fully exempt from income tax — but only under the Old Tax Regime. The exempt portion reduces your taxable salary, directly lowering your tax liability. Under the New Tax Regime (default from FY 2023-24), HRA is fully taxable.
EXEMPT
Tax-Free HRA
The minimum of the three rules. This portion is subtracted from your taxable income, saving tax at your applicable slab rate.
TAXABLE
Taxable HRA
HRA received above the exempt limit. This portion is added to your taxable salary and taxed at your applicable income tax slab rate.
80GG
No HRA? Claim 80GG
Self-employed or employees not receiving HRA can claim up to ₹60,000/year deduction under Section 80GG if they pay rent.
📐The Three-Rule Formula (Section 10(13A) + Rule 2A)
HRA exemption is the minimum (lowest) of the following three values. All three are calculated on an annual basis:
1
Actual HRA Received from Employer – The total HRA amount paid by your employer in the financial year. This is the ceiling — you can never claim more than what you received.
2
50% of (Basic + DA) if you live in a Metro City (Delhi, Mumbai, Chennai, Kolkata) — or 40% if you live in any other city. Calculated on annual Basic + DA.
3
Actual Rent Paid − 10% of (Basic + DA) per year. If rent paid is less than 10% of Basic+DA, this value becomes zero, meaning no HRA exemption is available.
Key Point: “Salary” for HRA calculation = Basic Pay + Dearness Allowance (DA) + Commission (if fixed % of turnover). It does NOT include HRA itself, bonus, or other allowances.
🏙️Metro vs Non-Metro Cities for HRA
| Category | HRA % of Basic+DA | Cities Covered |
|---|---|---|
| Metro Cities | 50% | Delhi (NCR), Mumbai, Chennai, Kolkata |
| Non-Metro Cities | 40% | Bangalore, Hyderabad, Pune, Ahmedabad, Jaipur, Lucknow, Chandigarh, Kochi, Surat, Nagpur, all others |
Important: Bangalore, Hyderabad, and Pune are NOT classified as Metro for HRA tax purposes under the Income Tax Act, despite being major cities. Only the four original metros qualify for the 50% rate.
🧮HRA Calculation Example (FY 2026–27)
Employee in Mumbai (Metro) with the following details:
| Particulars | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic Salary | ₹50,000 | ₹6,00,000 |
| Dearness Allowance (DA) | ₹0 | ₹0 |
| HRA Received | ₹20,000 | ₹2,40,000 |
| Rent Actually Paid | ₹18,000 | ₹2,16,000 |
| Rule 1: Actual HRA Received | — | ₹2,40,000 |
| Rule 2: 50% of Basic (Metro) | — | ₹3,00,000 |
| Rule 3: Rent − 10% of Basic | — | ₹2,16,000 − ₹60,000 = ₹1,56,000 |
| ✅ HRA Exemption (Minimum of 3) | — | ₹1,56,000 |
| ❌ Taxable HRA (₹2,40,000 − ₹1,56,000) | — | ₹84,000 |
Tax Saved: At 20% slab — ₹1,56,000 × 20% = ₹31,200/year (₹2,600/month). At 30% slab — ₹1,56,000 × 30% = ₹46,800/year.
📄Documents Required for HRA Claim
MANDATORY
Rent Receipts
Monthly rent receipts with landlord’s name, address, amount, and signature. Required if annual rent exceeds ₹1,00,000.
MANDATORY
Landlord’s PAN
If annual rent paid exceeds ₹1,00,000 (i.e. ₹8,334+/month), landlord’s PAN is mandatory. Submit to employer via Form 12BB.
RECOMMENDED
Rent Agreement
A registered or notarised rent/lease agreement strengthens your claim, especially during tax scrutiny or assessment.
EMPLOYER
Form 12BB Declaration
Submit rent details to your employer at the start of the financial year to ensure correct TDS deduction throughout the year.
📑Section 80GG – For Those Without HRA
If you are self-employed or a salaried employee whose employer does not provide HRA, you can still claim rent deduction under Section 80GG. The deduction is the minimum of:
RULE A
₹5,000 per month
Maximum fixed deduction = ₹60,000 per year under 80GG.
RULE B
25% of Total Income
25% of your adjusted gross total income for the year.
RULE C
Rent − 10% of Income
Actual rent paid minus 10% of adjusted gross total income.
Condition: To claim 80GG, neither you, your spouse, nor your minor child should own a residential property at the place of employment. File Form 10BA with your ITR.
FAQ
Frequently Asked Questions
Common queries about HRA exemption and House Rent Allowance in India
Is HRA exemption available under the New Tax Regime in FY 2026–27?▾
No. HRA exemption under Section 10(13A) is not available under the New Tax Regime. If you opt for the New Regime (which is the default from FY 2023-24 onwards), your entire HRA is treated as taxable income. The New Regime offers lower slab rates and a higher basic exemption (₹12.75L effective), which may offset the loss of HRA benefit depending on your salary and rent levels.
Can I claim HRA if I pay rent to my parents?▾
Yes, you can pay rent to your parents and claim HRA exemption, provided the arrangement is genuine. Your parents must declare this rental income in their own ITR. A formal rent agreement and regular rent receipts are recommended. However, you cannot claim HRA if paying rent to your spouse, as the Income Tax Department does not recognise such transactions for HRA purposes.
What if I live in my own house — can I still get HRA benefit?▾
No. HRA exemption is only available when you actually pay rent for accommodation you do not own. If you live in your own house, the entire HRA received from your employer is taxable. In such cases, you should discuss with your employer to restructure your salary to reduce the HRA component and increase other tax-efficient allowances.
Do I need to submit rent receipts to my employer every month?▾
Not necessarily monthly — it depends on your employer’s policy. Most employers require you to submit rent receipts quarterly or annually via Form 12BB. If your annual rent exceeds ₹1,00,000, landlord’s PAN is mandatory. Even if you miss submission to employer, you can still claim HRA exemption while filing your Income Tax Return (ITR).
Can I claim both HRA exemption and Home Loan interest deduction?▾
Yes, this is possible in certain situations — for example, if you own a house in one city but work and rent in another city, or if your own house is under construction. The Income Tax Department allows simultaneous claiming of HRA exemption (Section 10(13A)) and home loan interest deduction (Section 24(b) up to ₹2L) as long as both conditions are genuinely met and well-documented.
What is the HRA limit if my employer does not specify an HRA component?▾
If your salary structure does not include a separate HRA component, no HRA exemption is available under Section 10(13A). You would instead need to claim deduction under Section 80GG (up to ₹60,000/year), which has different eligibility conditions. It is advisable to negotiate with your employer to include an HRA component in your CTC for better tax efficiency.
Is Bangalore, Hyderabad or Pune considered Metro for HRA calculation?▾
No. Despite being major metropolitan areas, Bangalore, Hyderabad, Pune, and all other cities are classified as Non-Metro for HRA tax exemption purposes. Only the four original Metro cities — Delhi (including NCR), Mumbai (including Navi Mumbai and Thane), Chennai, and Kolkata — qualify for the 50% HRA exemption rate. All other cities are capped at 40% of Basic+DA.
How is HRA exemption calculated when I change cities mid-year?▾
If you live in a metro city for part of the year and a non-metro city for the rest, you must calculate HRA exemption separately for each period — applying 50% for the metro months and 40% for the non-metro months. Similarly, if your rent amount changes during the year, each period must be computed independently. The total annual exemption is the sum of all period-wise calculations.
Is TDS adjusted if I submit rent receipts late?▾
If you submit rent receipts to your employer late in the year, your employer will adjust TDS in the remaining months. The excess TDS already deducted will be reflected in your Form 26AS and Form 16. You can then claim a TDS refund when filing your ITR. It is best practice to submit declarations at the start of the financial year (April) to avoid excess TDS deduction throughout the year.
📌 Disclaimer: This HRA calculator provides estimates based on standard Section 10(13A) rules for FY 2026–27. Actual exemption may vary based on DA, commission, employment period, and employer’s HR policy. For precise tax advice, consult a Chartered Accountant or visit the official Income Tax India portal.
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