Work out your House Rent Allowance exemption from your Basic, HRA, rent and city type, using the least-of-three rule under Section 10(13A). Free, instant and private.
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Your exempt HRA is the least of these three amounts (old tax regime).
The House Rent Allowance component in your salary.
Annual (or monthly) rent paid, less 10% of Basic + DA.
50% of Basic + DA in metro cities, 40% elsewhere.
The smallest of the three is your exempt HRA; the rest is taxable.
Exempt HRA = least of (actual HRA, rent − 10% of Basic, 50%/40% of Basic)
Old tax regime only · Section 10(13A) of the Income-tax Act.
HRA is one part of your tax. Also try Income Tax Calculator, Take-home Salary Calculator, Gratuity Calculator.
How is HRA exemption calculated?
Exempt HRA is the least of three amounts: the actual HRA received, the rent you pay minus 10% of your Basic + DA, and 50% of Basic + DA in a metro city (40% in a non-metro). The remainder of your HRA is taxable. This applies under the old tax regime.
Can I claim HRA under the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new regime, HRA is fully taxable.
Which cities count as metro for HRA?
For the HRA calculation, the metro cities are Delhi, Mumbai, Kolkata and Chennai, where 50% of Basic + DA is used. All other cities use 40%.
What documents do I need to claim HRA?
You need rent receipts, and if your annual rent exceeds ₹1,00,000 you must also provide your landlord's PAN. Keep a rent agreement where possible.
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay rent to your parents who own the home, and they declare that rent as income. Keep proper receipts and a record of the payments.
Please note: Outputs are AI-generated and can contain errors. Use them as a starting point and check anything important before you act on it.
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