HRA Exemption Calculator
HRA (House Rent Allowance) is one of the most significant tax-saving components of your salary. If you live in rented accommodation, you can claim exemption under Section 10(13A) to reduce your taxable income substantially.
🏠 HRA Exemption = Least of Three
- 1️⃣ Actual HRA received from employer
- 2️⃣ 50% of Basic (metro) / 40% of Basic (non-metro)
- 3️⃣ Rent paid − 10% of Basic Salary
- HRA Exempt (Monthly)
- ₹13,000
- Taxable HRA (Monthly)
- ₹7,000
- Annual Tax Saving (30% slab)
- ₹46,800
- Annual Tax Saving (20% slab)
- ₹31,200
Frequently Asked Questions
What is HRA exemption?
House Rent Allowance (HRA) is a salary component that can be partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act, if you live in rented accommodation.
What are the three limits for HRA exemption?
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of Basic Salary for metro cities or 40% for non-metros, (3) Rent paid minus 10% of Basic Salary.
Which cities are considered metro for HRA purposes?
Delhi, Mumbai (including Thane), Kolkata, and Chennai are classified as metro cities for HRA. All other cities including Bengaluru, Hyderabad, Pune, and Ahmedabad are non-metro.
Can I claim HRA if I live in a house owned by a family member?
You can pay rent to a parent and claim HRA, as long as the rent is genuine and documented. However, you cannot claim HRA for rent paid to your spouse.
Is HRA available under the new tax regime?
No. HRA exemption is only available under the old tax regime. Under the new tax regime introduced in Budget 2020 (and made default from FY 2023-24), HRA deduction is not allowed.