HRA Exemption Calculator
Calculate how much House Rent Allowance is tax-exempt under Section 10(13A). Updated for FY 2025-26.
Salary & Rent Details
Enter your full financial year figures.
Enter 0 if DA is not part of your compensation package.
Metros: Delhi, Mumbai, Kolkata, Chennai. Tech hubs like Bangalore & Hyderabad are statutory Non-Metros (40%).
Section 10(13A) Breakdown
Enter your salary and rent details, then click Calculate HRA Exemption.
Renting a Flat in India? Check Your Lease Agreement
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Deep Dive: Section 10(13A) & HRA
1. The "Least of Three" Rule
Under Section 10(13A) of the Income Tax Act, the exemption for House Rent Allowance is the lowest of the following three amounts:
- Actual HRA Received: The specific allowance component in your salary slip.
- Rent Paid minus 10% of Salary: Total rent paid minus 10% of (Basic Salary + Dearness Allowance).
- City Limit: 50% of (Basic Salary + DA) for Metro cities (Delhi, Mumbai, Kolkata, Chennai), or 40% for Non-Metro cities.
Common Mistake: Confusing Bangalore or Hyderabad as "Metros" for HRA. Tax laws currently classify them as Non-Metros (40% limit).
2. Old vs New Tax Regime (2026 Update)
With the New Tax Regime becoming the default option for FY 2025-26, claiming HRA requires a specific choice:
New Tax Regime
HRA exemption is NOT allowed. Your entire HRA becomes fully taxable, but tax rates are lower overall.
Old Tax Regime
HRA exemption is fully available. Best for individuals paying high rent or having home loans.
3. Dual Benefit: HRA & Home Loan
You can claim both HRA exemption AND Home Loan Interest deduction (Section 24b) concurrently, provided you own a house and pay EMIs, but live in a rented accommodation in the same or a different city due to employment reasons.
HRA Claim Checklist
Rent Agreement
Ensure you have a formally drafted rent agreement, signed by both parties, with the exact rent amount specified.
Rent Receipts
Collect monthly rent receipts. They must specify the date, amount, property address, and landlord's signature.
Landlord’s PAN
If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer to claim HRA.
Bank Transfers
Always pay rent via NEFT, RTGS, or UPI. Avoid cash payments, as digital trails are required during IT scrutiny.
Renting from Parents
You can claim HRA if you pay rent to your parents. Ensure you transfer the amount and they show it as rental income in their ITR.
Frequently Asked Questions
Which cities are treated as metro cities for HRA?
Only Delhi, Mumbai, Kolkata, and Chennai are considered Metro cities (50% rule) for HRA exemption calculation under Indian Income Tax rules. Major tech hubs like Bengaluru, Hyderabad, and Pune are classified as non-metro (40% rule).
Can I claim HRA in the new tax regime?
No. The default New Tax Regime (Section 115BAC) does not allow HRA exemption under Section 10(13A). To claim HRA tax benefits, you must explicitly opt for the Old Tax Regime when filing your Income Tax Return.
When is landlord PAN mandatory for HRA claim?
If your total annual rent payment exceeds ₹1,00,000 (approx. ₹8,333 per month), providing your landlord's PAN to your employer is mandatory under Income Tax regulations to claim the exemption.