HRA Exemption Calculator — Free HRA Calculator Under Section 10(13A)

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HRA Exemption Calculator

Find your tax-free HRA in seconds under Section 10(13A). Covers metro (50%) and non-metro (40%) rules with a full worked example and documentation checklist.

On this page:

1. HRA Exemption Calculator Calculator  •  2. How to Use  •  3. Worked Example  •  4. FAQs

HRA Exemption Calculator

Find out how much of your House Rent Allowance is tax-exempt under Section 10(13A). Exemption is the least of three computed values.







1) HRA Received (Annual)₹ 0
2) 40%/50% of Salary (Annual)₹ 0
3) Rent − 10% of Salary (Annual)₹ 0
HRA Exempt (Least of above)₹ 0
Taxable HRA (Annual)₹ 0

* ‘Salary’ for HRA means Basic + DA + Commission (if fixed % of turnover). Keep rent receipts and rent agreement for claims above ₹1 lakh/year; landlord PAN needed if rent exceeds ₹12,000/month.

How to Use This Calculator

Enter your basic salary per month and dearness allowance if applicable — HRA calculations use basic + DA (+ fixed commission) as "salary". Enter the HRA received per month from your employer and the actual rent paid per month.

Choose your city type: metro cities (Delhi, Mumbai, Kolkata, Chennai) get 50% of salary, all other cities get 40%. The exemption is the lowest of three values: actual HRA received, 40%/50% of salary, or rent paid minus 10% of salary. The calculator computes all three and applies the least — exactly as per Section 10(13A) and Rule 2A.

Worked Example

Here is a real-world example of how the calculation works:

Example: An employee in Bengaluru (non-metro) with basic ₹50,000/month, HRA ₹20,000/month, rent ₹15,000/month

1) HRA received (annual)₹ 2,40,000
2) 40% of salary (annual)₹ 2,40,000
3) Rent − 10% of salary (annual)₹ 1,20,000
HRA exempt (least of three)₹ 1,20,000
Taxable HRA₹ 1,20,000

Frequently Asked Questions

Which three values determine HRA exemption?
Under Section 10(13A) read with Rule 2A, the exempt HRA is the least of: (1) actual HRA received from the employer, (2) 50% of salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for other cities, and (3) actual rent paid minus 10% of salary. "Salary" here means basic + DA + fixed commission.
What documents do I need to claim HRA?
Keep rent receipts (ideally with the landlord's signature) and a rent agreement. If annual rent exceeds ₹1 lakh, your landlord's PAN is mandatory. If the landlord is an NRI, TDS under Section 195 may apply on rent. Some employers also ask for 3 months of rent receipts upfront.
Can I claim HRA if I live in my parents' house?
Yes, if you actually pay rent to your parents and there is a genuine landlord-tenant relationship with money transfer proof and a rent agreement. The rent your parents receive becomes taxable income for them. Payments to a spouse are generally not allowed.
Can I claim both HRA and home loan benefits?
Yes. HRA exemption (Section 10(13A)) and home loan deductions (Section 24(b) interest up to ₹2 lakh, Section 80C principal up to ₹1.5 lakh) can be claimed simultaneously, provided the rented house and the owned house are in different cities or you have genuine reasons for renting near your workplace.
What if my employer doesn't pay HRA?
You can still claim rent deduction under Section 80GG if you are self-employed or your employer doesn't provide HRA. The deduction is the least of: ₹5,000 per month, 25% of adjusted income, or rent paid minus 10% of adjusted income — subject to Form 10BA declaration and no owned house in the city of employment.

Explore more free tools

AccountsPilot offers a complete suite of free calculators: GST Calculator, Income Tax Calculator, TDS Calculator and HRA Exemption Calculator. Bookmark the Tools page for all of them in one place.

Disclaimer: This calculator provides estimates for educational purposes only and does not constitute professional tax advice. Please consult a chartered accountant before making filing decisions.