HRA Exemption Calculator: Maximum Tax-Free Allowance

Calculate your tax-exempt House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act. Maximum benefit for salaried tenants under the Old Regime.

⚡ Try Free Now →

Home › All Tools › HRA Exemption Calculator (Free) — Section 10(13A) Old Regime

HRA (House Rent Allowance) is paid by employers to salaried employees living in rented accommodation. Under Section 10(13A) of the Income Tax Act, a portion of the HRA is tax-exempt. HRA exemption is NOT available in the New Regime — it applies only under the Old Regime.

HRA Exemption Formula: Exempt = MINIMUM of three: - (a) Actual HRA received from employer (annual) - (b) 50% of basic salary (metro cities: Mumbai, Delhi, Kolkata, Chennai) OR 40% of basic (other cities) - (c) Actual rent paid MINUS 10% of basic salary

Enter your basic salary (annual), HRA received (annual), actual rent paid (annual), and city type (metro/non-metro) into this free HRA Calculator to instantly get: (1) Tax-exempt HRA, (2) Taxable HRA portion, (3) Annual tax savings at your slab rate.

Example: Mumbai-based employee, Basic Rs 6 lakh, HRA Rs 3 lakh, Rent Rs 2.5 lakh paid annually: - (a) Actual HRA = Rs 3,00,000 - (b) 50% of Basic = Rs 3,00,000 (Mumbai = metro) - (c) Rent - 10% Basic = 2,50,000 - 60,000 = Rs 1,90,000 - Min = Rs 1,90,000 (tax-exempt). Balance Rs 1,10,000 taxable.

Important documentation: - Rent receipts (monthly) if rent > Rs 3,000/month - PAN of landlord if annual rent > Rs 1 lakh (mandatory) - Rent agreement (recommended) - If staying with parents, you can pay rent to them (TDS not applicable, parent shows rental income in their ITR)

Rent paid to spouse: NOT allowed for HRA exemption. Rent to parents allowed if you're not co-owner of the property they own.

HRA + Home Loan Interest combination: Possible if both are genuine — e.g., you own a home in Mumbai but work in Delhi on rent. Both deductions can be claimed separately. Many "income tax notices" arise from this scenario — proper documentation is essential.

City classification for HRA: Metro = 50% (Mumbai, Delhi, Kolkata, Chennai). Bangalore, Hyderabad, Pune, Ahmedabad — non-metro at 40% (per IT Dept clarification). Smaller cities all 40%.

हिंदी में खोजृं (Hindi search): HRA calculator hindi, हमस कैल्कुलेटर, हाଢ଼स रेंट अलाଢ଼ंस, सेक्शन 10(13A), टैक्स फ्री HRA, मेट्रो सिटी 50%, नॉन मेट्रो 40%, हमस आयकर बचत
Open HRA Exemption Calculator (Free) — Section 10(13A) Old Regime →

Frequently Asked Questions (FAQ)

Is HRA exemption available in the New Regime?
No. HRA exemption under Section 10(13A) is available only in the Old Regime. In the New Regime (default from FY 2025-26), HRA is fully taxable. If your HRA + 80C + Sec 24 deductions combined exceed Rs 4-5 lakh, the Old Regime is usually better.
When are rent receipts required?
Monthly rent receipts are mandatory if the monthly rent exceeds Rs 3,000 (per IT Dept guidelines). Receipts must include the landlord's name, address, signature, rent amount, period, and a revenue stamp (Rs 1 for cash payments above Rs 5,000). Submit these to your employer along with Investment Declaration Form 12BB.
When is the landlord's PAN mandatory?
The landlord's PAN is mandatory when annual rent exceeds Rs 1 lakh (i.e., monthly rent above Rs 8,333). If the landlord's PAN is not provided, the employer may deny the HRA exemption. If the landlord refuses to share their PAN, you can submit a declaration (Form 60), but this may attract scrutiny from the IT Dept.
Can I pay rent to my parents to claim HRA?
Yes, you can pay rent to your parents — but the property must be in your parents' name (you cannot be a co-owner). Execute a rent agreement, transfer rent monthly via NEFT (strictly avoid cash payments above Rs 5,000), and maintain receipts. Your parents must show the rental income in their ITR.
Can self-employed individuals claim HRA?
No, HRA is available only to salaried employees (Section 10(13A)). Self-employed individuals can claim Section 80GG (a similar deduction with different limits: minimum of (a) Rs 5,000/month, (b) 25% of total income, (c) rent minus 10% of income). The maximum benefit is usually lower.

City-wise availability

Free to use in Mumbai (metro 50%), Delhi (metro 50%), Kolkata (metro 50%), Chennai (metro 50%), Bangalore, Hyderabad, Pune, Sirsa, and Mandi Dabwali. Seamless on both mobile and desktop. Share the PDF directly via WhatsApp.

Try 121 free tools

SIP, EMI, Tax, Will, Affidavit, RTI, POA, Sale Deed, Gift Deed, NDA, Bond YTM, Forex, Gold, PPF, NPS, HRA — all 100% free for every Indian.

→ Explore All 121 Tools
Regulatory Disclaimer

Aumsetu.com is a Software-as-a-Service (SaaS) platform. It provides calculator tools, document templates, PDF generators, and workflow utilities intended for use by AMFI-registered Mutual Fund Distributors (MFDs), SEBI-registered Investment Advisers (RIAs), Chartered Accountants, and other qualified financial professionals practising in India.

Aumsetu.com is NOT a Mutual Fund Distributor, Investment Adviser, Research Analyst, Stock Broker, or Portfolio Manager. It does not solicit investments, does not distribute mutual fund units, does not recommend specific schemes, and does not provide personalised financial or investment advice to end-investors. All calculator outputs are illustrative projections based on user-supplied inputs and stated assumptions; they are not guarantees, forecasts, or promises of returns. Past performance is not indicative of future results.

Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing. Users of Aumsetu are solely responsible for verifying calculator outputs, applying regulations relevant to their profession, ensuring their own compliance with SEBI, AMFI, RBI, PFRDA and Income Tax laws, and for the accuracy of any advice they provide to their own clients using this tool.

Aumsetu is a personal, non-commercial community initiative by Deepak Singla, an AMFI-registered Mutual Fund Distributor (ARN-76535). For grievances or queries relating to this platform: info@aumsetu.com. Full Terms of Use, Privacy Policy, and Payments Policy apply.