HRA Exemption Calculator India
Calculate your House Rent Allowance exemption under Section 10(13A) for metro and non-metro cities.
HRA exemption is the least of three values: the HRA received, 50% of basic for metro cities (40% for non-metro), and rent paid minus 10% of basic. This calculator asks for all three and applies the rule.
House Rent Allowance (HRA) is partially exempt from tax under Section 10(13A) of the Income Tax Act. The exemption is available only when the employee actually pays rent for residential accommodation.
The exemption depends on three factors: the HRA received, the basic salary, the rent paid, and whether the city is a metro (Delhi, Mumbai, Kolkata, Chennai) or not.
How the calculation works
- HRA received: the amount your employer pays as HRA.
- Metro limit: 50% of basic for Delhi, Mumbai, Kolkata and Chennai; 40% for other cities.
- Rent minus 10% basic: actual rent paid reduced by 10% of basic salary.
- Exemption: the minimum of the three amounts above.
Worked example
Basic ₹30,000, HRA ₹12,000, rent ₹15,000, metro city. The three limits are: HRA = ₹12,000; 50% of basic = ₹15,000; rent − 10% basic = ₹15,000 − ₹3,000 = ₹12,000. Exemption = ₹12,000. Taxable HRA = ₹0.
Frequently asked questions
- Which cities are treated as metro for HRA?
- Delhi, Mumbai, Kolkata and Chennai are metro cities. All other cities use the 40% limit.
- Do I need rent receipts?
- Yes. Employers usually require rent receipts as proof, and the landlord's PAN is needed if annual rent exceeds ₹1 lakh.
- Can I claim HRA if I live in my own house?
- No. HRA exemption is only for rent paid for accommodation you do not own.