HRA Exemption Calculator

Works out the exempt portion of House Rent Allowance under Section 10(13A) — the least of three prescribed limits, available only under the old tax regime.

HRA Exemption Calculator

Computes exempt HRA under the salaried-employee HRA exemption rule — the least of the three prescribed limits.

Basic Salary + DA (Annual, ₹)

HRA Received (Annual, ₹)

Rent Paid (Annual, ₹)

City Type

Actual HRA Received—

Rent Paid − 10% of Salary—

50%/40% of Basic Salary—

Exempt HRA (Least of Above)—

Applicable only under the old tax regime, for salaried employees receiving HRA as part of salary. Requires actual rent payment with supporting proof (rent receipts / agreement, PAN of landlord if rent exceeds ₹1,00,000/year).

The three limits, and why the lowest one wins

Section 10(13A) doesn't exempt your whole HRA — it exempts the smallest of three numbers: the HRA you actually received, your rent paid minus 10% of basic salary, and 50% of basic salary (40% if you live outside Delhi, Mumbai, Kolkata or Chennai). Whichever of the three is lowest becomes your exemption; the rest of your HRA is added back to taxable salary.

This is why two people with identical salaries and identical HRA can end up with very different exemptions — it usually comes down to how much rent they actually pay relative to their salary. Someone paying low rent in a high-HRA package will find the "rent minus 10%" limit is what caps them, not the HRA itself.

What you need on file to claim this

Rent receipts or a rent agreement covering the period you're claiming for.
Landlord's PAN if annual rent exceeds ₹1,00,000 — without it, employers are required to deny the exemption at the TDS stage even if you genuinely paid the rent.
HRA exemption is only available under the old regime. If you've opted for the new regime, this exemption doesn't apply regardless of actual rent paid.

Frequently asked

Can I claim HRA if I live in my own house?

No — HRA exemption requires actual rent payment for accommodation you occupy. If you own your home and live in it, HRA received from your employer is fully taxable.

Can I pay rent to a parent or relative and claim HRA?

It's possible if the arrangement is genuine — an actual rent agreement, real payments (ideally through a bank, not cash), and the recipient declaring it as rental income in their own return. This is an area assessing officers scrutinise closely, so the paper trail matters as much as the payment itself.

What counts as a "metro" city for the 50% limit?

Only Delhi, Mumbai, Kolkata and Chennai get the 50% rate. Every other city — including Bengaluru, Hyderabad, Pune and Gurugram — uses the 40% rate, regardless of actual cost of living.

Sources

Paying rent to a relative, splitting rent between co-tenants, or claiming HRA alongside a home loan on a different property — these are exactly the situations where the calculator's assumptions stop matching yours.

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