Result
Annual HRA exemption
₹240,000
- Actual HRA received (annual)₹240,000
- 50% of Basic+DA (annual)₹240,000
- Rent paid − 10% of Basic+DA (annual)₹252,000
- Exempted from taxLeast of the 3 above per Section 10(13A)₹240,000
- Taxable HRA₹0
How to use this calculator
- Enter your monthly Basic + DA (from payslip).
- Enter monthly HRA received.
- Enter monthly rent paid.
- Choose metro vs non-metro city.
- Read the annual exemption (LEAST of the three calculated values).
About this tool
HRA (House Rent Allowance) is a common salary component and part of it is tax-exempt under Section 10(13A) of the Income Tax Act — provided you actually pay rent for accommodation. The exempt amount is the LEAST of three values: (a) actual HRA received, (b) 50% (metro) or 40% (non-metro) of Basic+DA, and (c) rent paid minus 10% of Basic+DA. Only the old tax regime allows this exemption — under the new regime (default from FY 2023-24), HRA is fully taxable. Rent receipts + landlord PAN (if annual rent >₹1L) are required as proof.
Frequently asked
Only 4 cities: Delhi, Mumbai, Kolkata, Chennai — they qualify for 50%. All other cities including Bangalore, Hyderabad, Pune, Ahmedabad get 40%. This is fixed by the Income Tax Act.
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