HRA Exemption Calculator (India) — Section 10(13A), Metro & Non-Metro
Calculate your HRA exemption under Section 10(13A). Find the least of three amounts, and check whether your city counts as a metro.
HRA Exemption Calculator
Exempt under Sec 10(13A)
₹1,90,000
Taxable HRA
₹10,000
50% of basic (cap)
₹2,50,000
Rent − 10% of basic
₹1,90,000
Exemption is the least of: actual HRA received, 50% of basic+DA, and rent paid minus 10% of basic+DA.
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How HRA Exemption Works: The Three-Limb Rule
HRA exemption under Section 10(13A) of the Income Tax Act hinges on a single principle: you are exempt on the smallest of three amounts. This is where most calculations go wrong.
The Three Limbs Explained
Your HRA exemption is capped by whichever of these three figures is the lowest:
| Limb | Formula | What It Means |
|---|---|---|
| (a) | Actual HRA received | The HRA amount your employer pays you each month |
| (b) | 50% of (basic + DA) or 40% for non-metro | A percentage cap based on your salary tier and city |
| (c) | Rent paid − 10% of (basic + DA) | Your actual rent minus a salary deduction |
Your exemption is the minimum of these three. Increasing your rent does not always increase your exemption—once one limb becomes the binding constraint, extra rent has no effect on your tax.
A worked example, limb by limb
Scenario: You live in Delhi (metro), earn basic plus DA of ₹6,00,000 annually, receive HRA of ₹2,40,000, and pay rent of ₹3,00,000.
- Limb (a): Actual HRA = ₹2,40,000
- Limb (b): 50% of ₹6,00,000 = ₹3,00,000
- Limb (c): ₹3,00,000 − 10% of ₹6,00,000 = ₹3,00,000 − ₹60,000 = ₹2,40,000
The smallest is ₹2,40,000, so your entire HRA is exempt. Taxable HRA = ₹0.
Metro Cities Are Narrower Than You Think
For HRA exemption purposes, metros are exactly four cities: Delhi, Mumbai, Kolkata, and Chennai. If you live in Bengaluru, Hyderabad, Pune, or Gurugram—no matter how expensive—you fall under the non-metro rule, and limb (b) becomes 40% instead of 50%. This single fact changes the exemption for millions of taxpayers.
The Evidence Requirement
HRA exemption requires that you actually pay rent and can prove it. Rent receipts are expected. When annual rent exceeds the threshold set by the Income Tax Department, your landlord's PAN is required. Paying rent to a family member is allowed but is scrutinised—you must evidence a genuine arrangement with real payments made and received.
Old Regime vs. New Regime
HRA exemption is available only in the old tax regime. If you have opted into the new tax regime, you cannot claim HRA exemption, which is one reason to compare both regimes before filing. Use our income tax calculator to model both scenarios, or explore your full tax deduction basket with the PPF maturity calculator.
Confirm your claim with a tax professional or the Income Tax Department before filing.
How to use the HRA Exemption Calculator (India)
Takes about a minute. No signup, no download, your data stays in your browser.
- 1Open the tool. Scroll up to the HRA Exemption Calculator (India) above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the HRA Exemption Calculator (India).
Is Bangalore a metro city for HRA exemption?
No. For HRA purposes only Delhi, Mumbai, Kolkata and Chennai count as metros. Bengaluru, Hyderabad, Pune and Gurugram are treated as non-metro, so the second limb is 40% of basic plus DA rather than 50%, however high the local rents happen to be.
Can I claim HRA if I pay rent to my parents?
Yes, it is permitted, but the arrangement has to be genuine. Rent must actually be paid, ideally by bank transfer, and your parent must declare that rental income in their own return. Claims of this kind attract scrutiny, so keep receipts and a rent agreement.
Do I need my landlord PAN to claim HRA?
Once annual rent crosses the threshold set by the Income Tax Department, yes, your employer will ask for the landlord PAN before allowing the exemption in your Form 16. Below that threshold rent receipts are usually sufficient. Your payroll team can tell you the current figure.
Can I claim HRA exemption in the new tax regime?
Generally no. HRA exemption is a feature of the old regime, so someone who has opted into the new regime cannot claim it. That is why the two regimes are worth comparing before you choose: a large HRA exemption can outweigh the new regime lower rates.
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