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HRA Exemption Calculator
Calculate Tax-Free House Rent Allowance (Section 10(13A))
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💡 Note: Enter annual amounts. Salary includes Basic + Dearness Allowance (DA).
Living in Metro City?
(Delhi, Mumbai, Kolkata, Chennai) – 50% Rule
Actual HRA Received:
₹0
Taxable HRA:
₹0
Exempted HRA Amount
₹0
Exempt
Taxable
How is HRA Exemption Calculated?
According to Section 10(13A) of the Income Tax Act, the HRA exemption is calculated as the lowest of the following three amounts:
- Actual HRA Received: The exact amount your employer pays you as HRA.
- Rent Paid – 10% of Salary: Actual rent paid minus 10% of your Basic Salary + DA.
- 50% or 40% of Salary: 50% if you live in a Metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% for any other non-metro city.
📊 Example Calculation
Suppose you live in a non-metro city, your Basic Salary is ₹6 Lakhs, you receive ₹2.4 Lakhs HRA, and you pay ₹1.8 Lakhs rent.
| Criteria | Amount |
|---|---|
| 1. Actual HRA Received | ₹2,40,000 |
| 2. Rent Paid – 10% of Basic (1.8L – 60k) | ₹1,20,000 |
| 3. 40% of Basic Salary | ₹2,40,000 |
| Exempt Amount (Lowest) | ₹1,20,000 |
❓ Frequently Asked Questions
Can I claim HRA if I live with parents?
Yes, you can claim HRA exemption by paying rent to your parents. You must have a valid rent agreement and proof of rent payment (bank transfer). Your parents will need to declare this as rental income in their IT return.
Can I claim both HRA and Home Loan Interest deduction?
Yes, you can claim both HRA exemption and home loan interest deduction (under Section 24b) if you are paying rent in the city where you work, while your own home is in a different city or rented out.
Is PAN of landlord mandatory?
If the annual rent paid exceeds ₹1,00,000, it is mandatory to provide the landlord’s PAN to your employer to claim HRA exemption.
What does “Salary” mean for HRA calculation?
For HRA calculation purposes, “Salary” includes Basic Salary + Dearness Allowance (DA) (if it forms part of retirement benefits) + Commission based on a fixed percentage of turnover. It does not include other allowances.
Is HRA available in the New Tax Regime?
No. The New Tax Regime (default from FY 2023-24) does not allow HRA exemption. To claim HRA benefits, you must opt for the Old Tax Regime.