HRA Exemption Calculator

Calculate how much of your HRA is exempt from income tax under Section 10(13A).

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Enter your salary and rent details to calculate HRA exemption

How HRA exemption is calculated

Under Section 10(13A), HRA exemption is the minimum of three amounts:

Three Conditions (minimum applies)
A = Actual HRA received
B = 50% of Basic (Metro) or 40% (Non-Metro)
C = Rent paid − 10% of Basic salary
The lowest of A, B, and C is the exempt amount. Any HRA above the exempt portion is taxable.
Example
Basic: ₹50,000/mo | HRA: ₹20,000 | Rent: ₹18,000 | Metro
A = ₹20,000. B = ₹25,000 (50% of basic). C = ₹18,000 − ₹5,000 = ₹13,000. Exempt = min(₹20K, ₹25K, ₹13K) = ₹13,000/month = ₹1,56,000/year.

Frequently asked questions

Is HRA exemption available under the new tax regime?

No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime. It is only available under the old tax regime. If you receive significant HRA and pay high rent, switching to the old regime may save more tax overall.

What if I live in my own house or pay no rent?

If you do not pay rent, HRA is fully taxable under the old regime. Condition C (rent − 10% of basic) becomes zero or negative, making the exempt amount zero. Consider whether the new regime is better for you in this case.

What documents do I need to claim HRA exemption?

Rent receipts for each month (stamped and signed by landlord), a rental agreement, and landlord's PAN if annual rent exceeds ₹1 lakh. Your employer will need these documents for Form 16.

What counts as "basic salary" for HRA calculation?

For HRA exemption purposes, basic salary includes basic pay and dearness allowance (DA) if it forms part of retirement benefits. Other allowances like special allowance or transport allowance are excluded.

Can I claim both HRA exemption and home loan deduction?

Yes, in certain cases. If you own a house in a different city than where you work and pay rent in your work city, you can claim both HRA exemption and home loan interest deduction under Section 24(b). This is a legitimate dual deduction.