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FreeSECTION 10(13A)

HRA Exemption Calculator

Calculate House Rent Allowance (HRA) tax exemption under Section 10(13A) for the Old Tax Regime.

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House Rent Allowance is often the largest tax-free component of a salary — and the most often mis-claimed. The exemption under Section 10(13A) is not "whatever HRA you get"; it is the least of three amounts, and it depends on your basic salary, your city, and the rent you actually pay. This calculator computes the exact exemption and the taxable HRA for a month or a year, shows which of the three limbs binds, and lets you test what changes if your rent or basic changes. It applies to the old tax regime only.

The three-way formula

The exempt HRA is the minimum of:

  1. Actual HRA received from the employer;
  2. Rent paid minus 10% of salary (basic + DA forming part of retirement benefits + turnover-based commission);
  3. 50% of salary if you live in Delhi, Mumbai, Kolkata or Chennai; 40% elsewhere (Bengaluru, Hyderabad, Pune and Gurugram are "non-metro" for this purpose).

Example: basic ₹50,000 a month, HRA ₹20,000, rent ₹18,000 in Pune. Limb 1 = ₹20,000; limb 2 = 18,000 − 5,000 = ₹13,000; limb 3 = 40% × 50,000 = ₹20,000. Exempt HRA is ₹13,000; taxable HRA is ₹7,000. Raising rent to ₹25,000 lifts the exemption to ₹20,000. The worked cases — including paying rent to parents and mid-year city moves — are in HRA exemption: the 3-way formula, rent receipts, landlord PAN.

How to use the calculator

  1. Enter basic salary and DA (monthly or annual — the tool handles both), the HRA you receive and the rent you pay.
  2. Choose metro or non-metro based on the city where you live, not where the company is.
  3. Read the exempt amount, the taxable HRA and which limb is the constraint.
  4. If you moved cities or changed rent mid-year, compute each period separately and add — the exemption is computed per period, not on annual averages.
  5. Carry the result into the income tax calculator to compare regimes.

Documents your employer will ask for

  • Rent receipts — monthly or quarterly, signed by the landlord; generate them with the rent receipt generator.
  • Landlord's PAN if annual rent exceeds ₹1 lakh, or a declaration if the landlord has none.
  • Rent agreement for higher rents or when paying relatives.
  • Form 12BB declaring the claim, submitted early in the year so TDS is reduced monthly.

If monthly rent exceeds ₹50,000, you must deduct TDS at 2% under Section 194-IB once a year and file Form 26QC; the TDS calculator covers it.

New regime? HRA is fully taxable

The new regime does not allow the 10(13A) exemption, so HRA is taxed like any other allowance. For many renters in metros the HRA exemption plus 80C plus home-loan interest is what keeps the old regime competitive; for others the new regime's lower slabs and ₹12 lakh rebate still win. Run both in the income tax calculator and see Old vs new tax regime for FY 2026-27.

Situations people ask about

  • Own house in another city, renting where you work: HRA exemption and home-loan interest can both be claimed.
  • Living in your own house: no HRA exemption; consider Section 80GG if you receive no HRA at all (₹5,000 a month cap).
  • Rent to parents or spouse: allowed for parents when the money genuinely moves and they own the house; courts have allowed spouse arrangements only with strong evidence — avoid.
  • Shared flat: each tenant claims their share, with receipts in each name.
  • No HRA in salary structure: use 80GG instead, capped at ₹60,000 a year and subject to conditions.

Frequently asked questions

Is Bengaluru a metro for HRA?

No. Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limb; every other city uses 40%.

Can I claim HRA without rent receipts?

Employers usually require receipts; for rent up to ₹3,000 a month they may waive them. At filing you can still claim if you have bank proof, but keep receipts for a possible notice.

Does DA count as salary for HRA?

Only DA that forms part of retirement benefits, plus commission as a fixed percentage of turnover. Other allowances are excluded.

Can I claim HRA and home-loan interest together?

Yes, if you genuinely rent in one city and own a house elsewhere, or if the owned house is under construction or let out.

What if my landlord refuses to share PAN?

Ask for a signed declaration in the CBDT format stating they have no PAN. If they have one and refuse, the employer may reject the claim above ₹1 lakh; you can still claim in your return with evidence.