EaseValueThe HRA exemption under Section 10(13A) is the least of three amounts: the actual HRA received, rent paid minus 10% of salary (basic + DA), and 50% of salary for metro cities (40% for non-metro). This calculator works out all three and shows your exempt and taxable HRA instantly.
How it’s calculated
- Exempt HRA is the least of: (a) actual HRA received, (b) rent paid − 10% of salary (basic + DA), (c) 50% of salary for metro cities / 40% for non-metro.
- Metro cities for HRA are Delhi, Mumbai, Kolkata and Chennai (50%). Everywhere else is treated as non-metro (40%).
- HRA exemption is available only under the old tax regime. Under the new regime, HRA is fully taxable.
- Salary here means Basic + Dearness Allowance (DA), if DA forms part of retirement benefits.
Frequently asked questions
Can I claim HRA under the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new regime, the entire HRA is taxable.
Which cities are metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai qualify as metro cities, where the exemption limit is 50% of salary. All other cities, including Jaipur, Pune, Hyderabad and Bengaluru, are non-metro at 40%.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent to a parent who owns the house, you can claim HRA — but the rent must actually be paid and the parent must report it as income. Keep a rent agreement and bank transfer proof.
Is a PAN of the landlord required?
Yes. If your annual rent exceeds ₹1,00,000, you must report the landlord’s PAN to your employer to claim the exemption.
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