HRA Calculator — House Rent Allowance Exemption

How HRA Exemption Works (Section 10(13A))

If you receive House Rent Allowance as part of your salary and you actually pay rent, you can claim partial or full exemption on that HRA under Section 10(13A) of the Income Tax Act. The exempt amount is the least of these three values:

1. Actual HRA received from the employer
2. Rent paid minus 10% of (Basic + DA)
3. 50% of (Basic + DA) for metro cities (Delhi, Mumbai, Kolkata, Chennai) OR 40% for non-metro cities

The remaining HRA is added to your taxable salary.

HRA Calculation Example

Employee in Mumbai (metro):

• Basic salary: ₹50,000/month → ₹6,00,000/year
• HRA received: ₹20,000/month → ₹2,40,000/year
• Rent paid: ₹25,000/month → ₹3,00,000/year

Three values:

1. Actual HRA: ₹2,40,000
2. Rent − 10% of basic: ₹3,00,000 − ₹60,000 = ₹2,40,000
3. 50% of basic (metro): ₹3,00,000

Least = ₹2,40,000 exempt. Taxable HRA = ₹0. This employee gets 100% HRA exemption!

HRA Documents You Need

• Rent receipts — signed by landlord, for each month or quarter
• Landlord's PAN — mandatory if annual rent exceeds ₹1,00,000
• Bank transfer proof — preferred over cash for audit clarity
• Rental agreement — signed copy

Frequently Asked Questions