HRA Exemption Calculator FY 2026-27
Calculate your HRA tax exemption under Section 10(13A). Find exactly how much tax you save on house rent.
HRA Details
Metro: Delhi, Mumbai, Chennai, Kolkata — affects HRA %
HRA Exemption Formula
// Section 10(13A) Rule
Exemption = MIN(
Actual HRA received,
50% of Basic (metro),
Rent - 10% of Basic
)
Related Calculators
HRA Exemption Rules — Section 10(13A) Explained
House Rent Allowance (HRA) exemption under Section 10(13A) is one of the most valuable tax benefits available to salaried employees who live in rented accommodation and opt for the old tax regime. The exemption is the minimum of three limits — whichever is lowest becomes the tax-free portion.
The three limiting conditions (minimum is exempt):
1. Actual HRA received from employer
2. 50% of basic salary (metro) or 40% of basic (non-metro)
3. Actual rent paid minus 10% of basic salary
HRA exemption is NOT available under the new tax regime. If you claim HRA, you must choose the old tax regime for that financial year. This is why comparing both regimes is crucial before declaring your choice to your employer in April.
HRA Worked Examples — Metro vs Non-Metro
| Scenario | Basic/mo | HRA Received | Rent Paid | City | HRA Exempt |
|---|---|---|---|---|---|
| IT Employee | Rs.50,000 | Rs.25,000 | Rs.20,000 | Bengaluru (metro) | Rs.15,000/mo |
| Bank Employee | Rs.40,000 | Rs.16,000 | Rs.18,000 | Pune (non-metro) | Rs.14,000/mo |
| Fresher | Rs.25,000 | Rs.12,500 | Rs.8,000 | Hyderabad (metro) | Rs.5,500/mo |
Metro Cities for HRA
Only Mumbai, Delhi (NCR), Kolkata, and Chennai qualify for the 50% basic HRA limit. All other cities including Bengaluru, Hyderabad, Pune, Ahmedabad are considered non-metro (40% limit). This is fixed by the Income Tax rules and has not been updated since 1997 despite urbanisation.
Proof Required
Rent receipts are required for HRA exemption claims above Rs.1 lakh per year (Rs.8,333/month). For rent above Rs.50,000/month, you must deduct TDS at 5% from rent and deposit it with the Income Tax Department under Form 26QC.
HRA if Paying Rent to Parents
Rent paid to parents is valid for HRA exemption if the payment is genuine and the parent owns the property. Your parent must show this rental income in their ITR. This is legal and commonly used tax planning.
Advertisement
HRA Calculator FAQs
Advertisement