HRA Exemption Calculator
About the HRA Exemption Calculator
House Rent Allowance (HRA) is the part of your salary meant to cover rent. If you actually pay rent, a portion of the HRA is exempt from income tax under Section 10(13A) — but only under the old tax regime; the new regime does not allow this exemption.
This calculator works out the exempt amount as the least of three figures and shows how much of your HRA stays taxable.
Frequently asked questions
How is HRA exemption calculated?
It is the least of three amounts: the actual HRA you receive; your rent paid minus 10% of basic salary; and 50% of basic if you live in a metro city (40% for non-metro). The smallest of these is exempt; the rest is taxable.
Which cities count as "metro" for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are treated as metros, where the limit is 50% of basic. Every other city, including Bengaluru, Hyderabad and Pune, uses the 40% non-metro limit.
Can I claim HRA under the new tax regime?
No. The HRA exemption is available only under the old regime. If you opt for the new regime you cannot claim it — one factor when comparing the two with our Income Tax calculator.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent to a parent who owns the home, with proof such as a rent agreement and bank transfers, and the parent declares that rent as income. Rent paid to a spouse is generally not accepted.
Do I need my landlord's PAN to claim HRA?
If your total rent exceeds ₹1 lakh in a year, you must report your landlord's PAN to your employer or in your return. Below that, rent receipts are usually enough.