HRA Calculator
Estimate how much house rent allowance is exempt from tax.
HRA Exemption Under Section 10(13A)
House Rent Allowance is a salary component meant to cover rent. Only part of it is tax-free under Section 10(13A) in the Old Tax Regime. The exempt portion is the lowest of three tests based on basic salary, actual HRA received, and rent paid.
How to use this calculator
Enter monthly basic and HRA from your salary slip. Basic usually excludes HRA but includes DA if your company structures it that way. Enter actual rent paid and mark metro (Delhi, Mumbai, Kolkata, Chennai) or non-metro.
The exempt amount is the minimum of: actual HRA received, 50% of basic for metros or 40% for non-metros, and rent minus 10% of basic. If rent is only slightly above 10% of basic, exemption stays small even when HRA is a large line item.
Use this before choosing Old Regime at the start of the financial year. Keep rent receipts and landlord PAN when annual rent exceeds ₹1 lakh. HRA exemption is not available in the New Tax Regime.
If your employer does not collect rent proofs during the year, you can still claim HRA when filing ITR under Old Regime, but you must retain receipts and PAN for scrutiny. Metro vs non-metro classification on Form 16 should match your rent city.
HRA exemption rule
Exempt HRA = minimum of: 1. Actual HRA received 2. 50% of basic (metro) or 40% (non-metro) 3. Rent paid minus 10% of basic Example: Basic ₹50,000, HRA ₹20,000, rent ₹18,000, non-metro. Test 2 = ₹20,000 (40% of basic). Test 3 = ₹18,000 − ₹5,000 = ₹13,000. Exempt HRA = ₹13,000. Taxable HRA = ₹7,000. Pay rent via bank transfer when claiming rent paid to parents.
Frequently Asked Questions
Can I claim HRA if I pay rent to parents?
Yes if the house is in their name and rent is paid via bank with receipts. Parents must declare rental income in their ITR.
Landlord PAN required?
Mandatory when annual rent exceeds ₹1 lakh. Provide PAN to your employer for Form 16 HRA exemption.
HRA plus home loan deduction?
Possible if you own a house in one city but rent in another for employment. Both benefits follow separate rules.
Rent to spouse allowed?
Rent to spouse or minor child is generally disallowed. Rent to parents with documentation is accepted.
HRA in New Tax Regime?
No. Section 10(13A) exemption applies only in Old Regime even if you pay rent.
Own house, no rent paid?
HRA exemption is zero. Compare Old vs New regime without assuming HRA benefit.
Metro classification for Bangalore?
Many employers treat Bangalore and Pune as non-metro for the 40% test. Confirm with HR on Form 16.
HRA if salary structure has no HRA line?
You cannot claim HRA exemption if your salary pays consolidated amounts without a separate HRA component, even if you pay rent.
Shared accommodation HRA?
If you share rent with roommates, claim only your share with rent receipt and landlord PAN. The exemption uses your actual rent paid, not the full flat rent.
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