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HRA Exemption Calculator — Section 10(13A) (Old Tax Regime)

House Rent Allowance (HRA) received from an employer is partially or fully exempt from income tax under Section 10(13A) read with Rule 2A of the Income Tax Act. The exemption is calculated as the minimum of three conditions: the actual HRA received, a percentage of Basic+DA (50% for metro cities — Mumbai, Delhi, Chennai, Kolkata — and 40% for other cities), and the excess of rent paid over 10% of Basic+DA. This means you cannot claim full HRA exemption unless you are actually paying significant rent. This calculator compares all three conditions instantly and shows you which one limits the exemption, so your CA firm can advise salaried clients on exactly how much HRA is tax-free and how much will be added to their gross income.

Enter Salary & Rent Details

Include only if DA forms part of retirement benefit

Metro: 50% exemption | Non-Metro: 40% exemption

Enter basic salary and HRA received to calculate the exemption.

Key Rules for HRA Exemption

  • You must actually be paying rent — you cannot claim HRA for accommodation owned by you
  • If rent exceeds ₹1 lakh/year, the landlord's PAN is mandatory
  • HRA exemption is not available under the New Tax Regime
  • Rent paid to a spouse or close relative may be disallowed
  • DA is included in Basic+DA only if it forms part of retirement benefit (salary)

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Frequently Asked Questions

How is HRA exemption calculated under Section 10(13A)?+
The exempt HRA is the minimum of three amounts: (1) Actual HRA received from employer, (2) 50% of Basic+DA for metro cities (Mumbai, Delhi, Chennai, Kolkata) or 40% for non-metro cities, and (3) Actual rent paid minus 10% of Basic+DA.
What is included in Basic+DA for HRA calculation?+
Only the Dearness Allowance that forms part of the salary for retirement benefit purposes (i.e., that is used to calculate PF/Gratuity) is included. For most private sector employees, DA is nil, so only Basic Salary is used.
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. The new regime does not allow most deductions and exemptions. Employees must opt for the old regime specifically to claim HRA.
Is PAN of landlord mandatory for HRA claim?+
Yes. If rent paid exceeds ₹1,00,000 per annum (₹8,334 per month), you must provide the landlord's PAN to claim HRA exemption. If the landlord does not have a PAN, you can submit Form 60 instead.
Can HRA be claimed if living with parents?+
Yes, if you are genuinely paying rent to your parents (not a spouse). The rent agreement and bank transfer evidence are essential. The parent must report this rental income in their own ITR. Rent to spouse is typically disallowed.

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