What is HRA exemption under Section 10(13A)?

HRA (House Rent Allowance) exemption under Section 10(13A) allows salaried employees to claim tax exemption on the HRA component of their salary, subject to the least of three conditions: actual HRA received, 50%/40% of basic salary (metro/non-metro), or actual rent paid minus 10% of basic salary.

Which cities are considered metro for HRA calculation?

For HRA exemption, Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities. For these cities, the HRA exemption limit is 50% of basic salary. For all other cities including Bangalore, Hyderabad, Pune, and Ahmedabad, the limit is 40% of basic salary.

Can I claim HRA if I live with parents?

Yes, you can claim HRA if you pay rent to your parents. You must have a valid rent agreement, and your parents must show this rental income in their ITR. This is a legal and accepted practice under Indian tax law.

Is HRA exemption available in new tax regime?

No. HRA exemption under Section 10(13A) is only available under the old tax regime. If you opt for the new tax regime (default from FY 2024-25 onwards), you cannot claim HRA exemption.

Free HRA Exemption Calculator – Section 10(13A)

Calculate your House Rent Allowance (HRA) tax exemption instantly. Supports metro and non-metro cities. Based on Section 10(13A) of the Income Tax Act. No sign-up. No ads.

Metro cities (50% rule): Delhi, Mumbai, Kolkata, Chennai | Non-metro (40% rule): Bangalore, Hyderabad, Pune, Ahmedabad & all others

Basic Salary (Monthly)

₹

Enter basic salary only — not gross/CTC. Usually 40–50% of CTC.

HRA Received (Monthly)

₹

Check your salary slip or offer letter for the HRA component.

Actual Rent Paid (Monthly)

₹

Enter 0 if you are not paying rent / living in own house.

Annual HRA Received ₹0

HRA Exemption ₹0

Taxable HRA ₹0

How Exemption is Calculated (Least of 3)

1. Actual HRA Received (Annual) ₹0

2. 50%/40% of Basic Salary (Annual) ₹0

3. Rent Paid – 10% of Basic (Annual) ₹0

🏠 Paying rent above ₹50,000/month? TDS filing is mandatory. File TDS on Rent →

About TrufinOps HRA Exemption Calculator

The TrufinOps HRA Calculator helps Indian salaried employees calculate their House Rent Allowance (HRA) tax exemption under Section 10(13A) of the Income Tax Act. It computes all three HRA conditions simultaneously and automatically identifies the minimum (i.e., the exemption amount). All calculations run in your browser — zero data collection.

What Is HRA Exemption?

House Rent Allowance (HRA) is a component of your salary package. Under Section 10(13A), the actual HRA you receive from your employer is not fully taxable — a portion of it is exempt from income tax, provided you are actually paying rent. This exemption is only available under the old tax regime.

HRA Exemption Formula – 3 Conditions

The HRA exemption is the least of these three amounts (calculated annually):

Condition 1: Actual HRA received from employer
Condition 2: 50% of Basic Salary (metro) or 40% of Basic Salary (non-metro)
Condition 3: Actual Rent Paid − 10% of Basic Salary

The remaining HRA (total HRA minus exemption) is added to your taxable income.

Metro vs Non-Metro Cities

Only four cities are classified as metro for HRA: Delhi, Mumbai, Kolkata, and Chennai. Residents of these cities can claim up to 50% of basic salary as exemption (Condition 2). All other cities — including Bangalore, Hyderabad, Pune, and Ahmedabad — are treated as non-metro, where the limit is 40% of basic salary.

Example: HRA Calculation for Mumbai (Metro)

Basic Salary: ₹50,000/month = ₹6,00,000/year
HRA Received: ₹20,000/month = ₹2,40,000/year
Rent Paid: ₹18,000/month = ₹2,16,000/year

Three conditions:

Condition 1 = ₹2,40,000
Condition 2 = 50% × ₹6,00,000 = ₹3,00,000
Condition 3 = ₹2,16,000 − 10% × ₹6,00,000 = ₹2,16,000 − ₹60,000 = ₹1,56,000

HRA Exemption = Least = ₹1,56,000. Taxable HRA = ₹2,40,000 − ₹1,56,000 = ₹84,000.

How to Claim HRA Exemption

Declare rent paid to your employer during investment declaration season
Submit rent receipts (especially if monthly rent exceeds ₹3,000)
If annual rent exceeds ₹1,00,000, your landlord's PAN is mandatory
Claim via ITR if employer did not factor it in Form 16
Keep rent agreements and payment proofs for at least 7 years

HRA in New Tax Regime

The new tax regime (default from FY 2024-25 onwards) does not allow HRA exemption or most other deductions (80C, 80D, etc.). If HRA forms a significant part of your salary, the old tax regime may be more beneficial. Use our tax regime comparison tool to decide.

Frequently Asked Questions

Can I claim HRA without rent receipts?

If monthly rent is below ₹3,000, rent receipts are not mandatory but recommended. Above ₹3,000/month, you must provide rent receipts to your employer. If annual rent exceeds ₹1,00,000, the landlord's PAN is mandatory.

What if I own a house but also pay rent elsewhere?

You can claim HRA exemption even if you own a house, as long as you are genuinely living in a rented accommodation in a different city for employment reasons. Both can coexist legally.

Is HRA exemption available for self-employed?

No. HRA exemption under Section 10(13A) is only for salaried employees. Self-employed individuals can claim rent deduction under Section 80GG, subject to certain conditions and a maximum of ₹60,000 per year.

Disclaimer

This calculator is based on Section 10(13A) of the Income Tax Act as understood in FY 2026-27. Tax laws may change — always consult a chartered accountant or tax professional for personalised advice. This tool is for informational purposes only.