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💰 Finance ToolHRA Exemption Calculator
Find out exactly how much of your HRA is tax-exempt and how much is taxable. Metro vs non-metro, with full working shown.
How HRA exemption is calculated — Rule 2A
Under Section 10(13A) of the Income Tax Act, the HRA exemption is the minimum of: (1) actual HRA received from employer, (2) 50% of basic+DA for metro cities or 40% for non-metro, (3) actual rent paid minus 10% of basic+DA. The remaining HRA is added to taxable salary.
If rent paid exceeds ₹1 lakh per year (₹8,333/month), you must provide the landlord's PAN number to your employer to claim exemption. Self-employed individuals cannot claim HRA under 10(13A) — they can claim rent under Section 80GG instead (₹5,000/month or 25% of income, whichever is less).
HRA and home loan together
You can claim both HRA (Section 10(13A)) and home loan interest deduction (Section 24, up to ₹2 lakh) simultaneously — if you rent in the city where you work and own a home elsewhere or the owned home is under construction.
Yes — you can pay rent to parents and claim HRA, provided the property is in their name, you pay via bank transfer, and they declare the rental income in their ITR. You cannot pay rent to your spouse for HRA purposes.
If HRA is not a component of your salary, you can claim rent deduction under Section 80GG — capped at ₹5,000/month, 25% of total income, or actual rent minus 10% of income (least of the three). File Form 10BA with your ITR.
No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime. This is a key reason why the old regime can be better for salaried employees who pay high rent.