HRA Exemption Calculator (Section 10(13A))
Work out how much of your House Rent Allowance is exempt from tax, and how much is not. The calculator shows all three statutory limits so you can see which one is holding your exemption down.
Applies to the old tax regime — HRA exemption is not available under the new regime
Leave at 0 if your salary structure has no DA.
Delhi, Mumbai, Kolkata and Chennai only — 50% of salary applies.
HRA exemption
₹1,80,000
Limited by rent paid minus 10% of salary
The three limits
Salary for this purpose is basic plus dearness allowance: ₹6,00,000.
The three limits, and why the middle one usually wins
HRA exemption is not simply the allowance your employer pays you. It is the lowest of three figures, and in practice the second — rent paid minus 10% of salary — is almost always the binding one for people in metro cities on a normal salary structure.
This has a practical consequence worth understanding: if your rent is low relative to your salary, your exemption shrinks quickly. Someone earning a basic of ₹50,000 a month who pays ₹5,000 rent gets nothing, because 10% of salary already exceeds the rent paid.
What counts as salary
For HRA purposes, salary means basic pay plus dearness allowance, plus any commission calculated as a fixed percentage of turnover. It does not include special allowance, bonus, or any other component. This is why two people with the same CTC can get very different HRA exemptions — the one with a higher basic has a larger 50% ceiling but also a larger 10% subtraction.
Old regime only
Since the new regime removed most exemptions, HRA is only claimable if you have opted for the old regime. For someone paying substantial rent in a metro city, the HRA exemption alone can be large enough to make the old regime the better choice — which is worth checking rather than assuming, since the new regime is the default.
Keeping the documentation straight
Rent receipts, a rent agreement and the landlord's PAN where annual rent exceeds ₹1 lakh are the three things an employer will ask for. Claims involving rent paid to family members attract more scrutiny, so genuine bank transfers and the landlord declaring the income are what make such a claim defensible.
Frequently asked questions
- How is HRA exemption calculated?
- The exemption is the least of three amounts: the HRA you actually received, the rent you paid minus 10% of salary, and 50% of salary if you live in a metro city or 40% if you do not. Salary here means basic plus dearness allowance, not your full gross.
- Which cities count as metro for HRA?
- Only Delhi, Mumbai, Kolkata and Chennai. This is a fixed statutory list — Bengaluru, Hyderabad, Pune and Gurugram are all treated as non-metro for HRA purposes even though rents there are comparable, so the 40% limit applies.
- Can I claim HRA under the new tax regime?
- No. The HRA exemption under Section 10(13A) is only available under the old regime. If you are on the new regime, your entire HRA is taxable — which is often the deciding factor when comparing the two regimes for someone paying significant rent.
- Do I need a landlord's PAN?
- If your annual rent exceeds ₹1,00,000, you must report your landlord's PAN to your employer to claim the exemption. Without it, the employer will not allow the exemption while computing TDS, though you may still be able to claim it when filing your return.
- Can I claim HRA if I pay rent to my parents?
- Yes, provided the arrangement is genuine. Your parents must actually own the property, you must genuinely pay the rent — ideally by bank transfer rather than cash — and they must declare that rent as income in their own returns. Arrangements without those elements are routinely disallowed.
- What if I get no HRA in my salary?
- Section 10(13A) does not apply, but you may be able to claim a deduction under Section 80GG instead, subject to its own limits. That is a separate provision with different conditions.
Related free tools
- CTC to In-Hand Salary Calculator
Enter your CTC and see the exact monthly take-home after PF, professional tax and income tax. Free, no sign-up.
- Income Tax Calculator
Compare your tax under the old and new regimes for FY 2026-27, including the Section 87A rebate.
Handling HRA declarations for a team?
Collecting rent receipts, landlord PANs and investment declarations by email is where payroll time disappears. Smart Dhandha keeps salary structures, declarations and payslips together, so TDS is computed from records rather than from a spreadsheet someone maintains by hand.
- Salary structures with HRA held per employee
- Payslips and TDS computed from the same data
- Statutory deductions ready for filing
This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.