🏘️ Tax Saving

HRA Calculator — Rent Exemption

HRA छूट कैलकुलेटर — धारा 10(13A)

Calculate your HRA tax exemption under Section 10(13A) of the Income Tax Act. Metro vs non-metro rules applied automatically. For Old Regime filers.

🏠 Your HRA Details

Metro = Delhi, Mumbai, Kolkata, Chennai only. Everywhere else (incl. Bengaluru, Hyderabad, Pune) is non-metro.

🧮 Three-Condition Rule (Sec 10(13A))

Annual HRA Exempt
₹0
lowest of the three
₹0
Monthly exempt
₹0
HRA taxable / yr
₹0
Tax saved (30%)
₹0
Total HRA / yr

The Three-Condition HRA Rule — Exactly How It Works

Section 10(13A) of the Income Tax Act, 1961 exempts part of your House Rent Allowance from income tax. The exempt portion equals the minimum of these three values:

Whichever is smallest becomes your tax-free HRA. The rest of your HRA is taxable at your slab rate. This is why people with high rent but low HRA often get the least benefit — their "HRA received" caps the exemption.

Example: Basic ₹40,000/mo, HRA ₹20,000/mo, rent ₹18,000/mo, non-metro. Annual: HRA received ₹2,40,000; Rent − 10% basic = ₹1,68,000; 40% basic = ₹1,92,000. Lowest = ₹1,68,000 exempt.

Documents to Keep

If you pay rent to parents or spouse, you can still claim HRA — but the rent payment must be genuine (bank transfer, they declare it as income in their ITR). The IT department scrutinises this closely.

Old vs New Regime Impact on HRA

HRA exemption is only available under the Old Regime. From FY 2023-24, the New Regime became the default — it has lower slab rates and a ₹75,000 standard deduction, but removes HRA, 80C, and most other exemptions.

If your HRA exemption + 80C + other deductions add up to more than ~₹3.75 lakh/year, Old Regime usually wins. Below that, New Regime wins. Use our Income Tax Calculator to compare both side-by-side.

Related tools

💼CTC to In-handFull salary breakdown 🏠Rent Receipt GeneratorHRA receipts as PDF 📊Income Tax CalculatorOld vs new regime 💵Salary SlipPrintable payslip PDF
❓ Frequently Asked Questions
How is HRA exemption calculated?›
Under Section 10(13A), the exempt HRA is the minimum of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic salary (metro) or 40% (non-metro). Whichever is lowest becomes your exemption.
Which cities count as "metro" for HRA?›
Only four cities: Delhi, Mumbai, Kolkata, Chennai. Everywhere else including Bengaluru, Hyderabad, Pune, Ahmedabad, Shimla, Chandigarh is treated as non-metro (40% cap). This is surprising to many — Bengaluru/Hyderabad are big cities but not metros for HRA purposes.
Can I claim HRA under the New Tax Regime?›
No. HRA exemption is only available under the Old Regime. Under New Regime (default from FY 2023-24), the standard deduction of ₹75,000 is the only salary-related benefit. If you pay significant rent, run both regimes to compare.
Do I need rent receipts and landlord PAN?›
Yes. For rent up to ₹1 lakh/year you just need rent receipts with revenue stamp if ≥₹5,000/month. If annual rent exceeds ₹1 lakh, you must also submit the landlord's PAN. Without PAN your HRA claim will be disallowed.
What if I live with my parents?›
Yes, you can claim HRA by paying rent to parents — but it must be a real transaction. Pay via bank transfer, get receipts, and your parents must show this as rental income in their own ITR. Otherwise it's treated as tax evasion.
What's DA (Dearness Allowance)?›
DA is a salary component paid to government and PSU employees to offset inflation. For HRA calculation, only DA forming part of retirement benefits is added to basic. Private sector usually has no DA — leave it as zero.