HRA Calculator
House Rent Allowance exemption per Section 10(13A) of the Income Tax Act. Enter your basic, HRA, rent, and city tier.
Metro = Delhi, Mumbai, Kolkata, Chennai only.
HRA exemption applies only under the OLD tax regime. The new regime (default from FY 2023-24) doesn't allow this deduction.
How HRA exemption is calculated
Section 10(13A) of the Income Tax Act sets the HRA exemption as the least of three amounts:
Exempt HRA = MIN( actual HRA received, rent paid − 10% of (basic + DA), 50% of (basic + DA) if metro 40% of (basic + DA) if non-metro )
Whichever is smallest becomes your annual HRA exemption. The remaining HRA is fully taxable as salary at your slab rate. Metro means only Delhi, Mumbai, Kolkata, or Chennai — Bangalore, Hyderabad, Pune use the 40% rate.
Important: HRA exemption is not available under the new tax regime. Run both regimes side-by-side using our Income Tax Calculator to see which optimises your overall tax.
Frequently asked questions
What is HRA exemption under Section 10(13A)?▼
House Rent Allowance is a salary component employers pay to help you cover rent. Section 10(13A) of the Income Tax Act lets you claim a tax exemption on part of HRA — but only the LEAST of three values: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic salary if you live in a metro (Delhi, Mumbai, Kolkata, Chennai), or 40% if you live elsewhere. The remaining HRA is fully taxable.
Which cities count as metros for HRA?▼
Only the four classical metros — Delhi (incl. NCR areas like Gurgaon, Noida), Mumbai, Kolkata, Chennai — qualify for the 50% rate. Bangalore, Hyderabad, Pune, and others use the 40% rate, even though they're called 'metros' colloquially. The Income Tax Act uses the original 1978 definition which has not been updated.
Can I claim HRA in the new tax regime?▼
No. The new tax regime (default from FY 2023-24) does not allow most exemptions including HRA, LTA, Section 80C, 80D, and standard deduction (until FY 2024-25). The old regime preserves all exemptions. Run both calculations side-by-side using our Income Tax Calculator to see which is better for you.
What documents do I need to claim HRA?▼
Rent receipts (monthly or quarterly, signed by landlord), the rent agreement (especially if rent is >₹3000/mo), and your landlord's PAN if total annual rent exceeds ₹1 lakh. Keep these for 7 years in case of scrutiny. Many employers require submission via the e-payroll portal in January-February for that financial year.
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