HRA Calculator
HRA Calculator
Calculate House Rent Allowance Exemption Section 10(13A)
IT Act 2025HRA Calculator: Enter Your Details
Use our HRA exemption calculator to find out how much of your House Rent Allowance is tax-free under Section 10(13A) of the Income Tax Act. HRA exemption is the minimum of 3 conditions.
Salary Details
Rent Details
HRA Exemption Computation
HRA Exemption Rules: Section 10(13A)
How HRA is Calculated
- Actual HRA Received from employer
- Rent Paid − 10% of Basic + DA
- 50% of Basic (Metro) or 40% (Non-Metro)
- Exemption = Minimum of above 3
Metro vs Non-Metro Cities
- Metro (50%): Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru
- Non-Metro (40%): All other cities
- Difference can save up to ₹30,000 in tax for ₹10L basic salary
Metro vs Non-Metro: Impact on HRA
| Parameter | Metro Cities | Non-Metro Cities |
|---|---|---|
| Salary Percentage | 50% of Basic | 40% of Basic |
| Cities | Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru | All other cities in India |
| Example (₹6L Basic) | ₹3,00,000 | ₹2,40,000 |
| Max Tax Saving (30% slab) | Up to ₹90,000 | Up to ₹72,000 |
Understanding HRA Exemption: Complete Guide for Salaried Employees
House Rent Allowance (HRA) is one of the most significant tax-saving components in a salaried employee's compensation structure. Under Section 10(13A) of the Income Tax Act, a portion of the HRA received from your employer is exempt from tax, providing substantial relief to employees living in rented accommodation. Our HRA calculator helps you accurately determine your tax-exempt HRA amount based on the three statutory conditions prescribed by the Income Tax Department.
HRA Exemption in Old vs New Tax Regime
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 2023-24 under the Income Tax Act, 2025), you cannot claim HRA exemption, regardless of your actual rent payments. This makes the choice between tax regimes particularly important for employees living in rented accommodation. Those paying significant rent may find the Old Tax Regime more beneficial despite its higher tax rates, as the HRA exemption along with other deductions like 80C, 80D, and home loan interest can result in lower overall tax liability. Use our Income Tax Calculator to compare both regimes.
Section 80GG: For Employees Without HRA
For self-employed individuals or salaried employees who do not receive HRA from their employer, Section 80GG provides an alternative deduction for rent paid. The deduction is the minimum of: ₹5,000 per month (₹60,000/year), rent paid minus 10% of total income, or 25% of total income. To claim Section 80GG, you must not own any residential property at the place of employment, and you must file a declaration in Form 10BA.
Documents Required for HRA Claim
- Rent Receipts: Monthly rent receipts signed by your landlord
- Rent Agreement: Mandatory if annual rent exceeds ₹1,00,000
- Landlord's PAN: Required if annual rent exceeds ₹1,00,000
- Proof of Residence: Utility bills or Aadhaar showing rented address
Frequently Asked Questions about HRA Calculator
Find answers to common questions about hra calculator. Click on any question to expand the answer.
HRA exemption is calculated as the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metros. Metro cities include Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bengaluru.
To claim HRA exemption, you need: (1) Rent receipts with landlord's name and address, (2) Rent agreement if rent exceeds ₹1 lakh/year, (3) Landlord's PAN if rent exceeds ₹1 lakh/year, (4) Proof of HRA component in salary.
Yes, you can claim HRA exemption if you pay rent to your parents. However, your parents must declare the rent as income from house property in their tax returns. The arrangement should be genuine with proper documentation.
No, HRA exemption under Section 10(13A) is NOT available if you opt for the new tax regime under the Income Tax Act, 2025. You can only claim HRA exemption under the old tax regime.
Section 80GG allows deduction for rent paid if you don't receive HRA from employer. The deduction is minimum of: (1) ₹5,000 per month (₹60,000/year), (2) Rent paid minus 10% of total income, (3) 25% of total income. You must not own any residential property.
This calculator is for informational and educational purposes only. Tax calculations are based on the Income Tax Act, 2025 (effective April 1, 2026) and may not reflect all individual circumstances. Tax slabs, rebate thresholds, and deduction limits are subject to change through government notifications. This tool should not be considered as tax advice. Always verify the latest tax rules at incometax.gov.in and consult a qualified Chartered Accountant for personalized guidance.
Latest Updates & Regulatory Changes
Income Tax Act, 2025 Effective
The new Income Tax Act, 2025 came into effect from April 1, 2026, replacing the Income Tax Act, 1961. New tax slabs, revised rebate u/s 87A (up to ₹60,000), and ₹75,000 standard deduction under the default New Regime are now applicable.
New Tax Regime is Default
Under the Income Tax Act, 2025, the New Tax Regime is the default regime. Taxpayers must explicitly opt for the Old Regime. Salaried individuals with taxable income up to ₹12,75,000 pay zero tax under the New Regime.
Rebate u/s 87A Enhanced
Section 87A rebate increased to ₹60,000 (from ₹25,000) for taxable income up to ₹12,00,000 under the New Regime. This effectively makes salaried income up to ₹12,75,000 tax-free.
7-Slab Structure Introduced
The New Regime now has 7 tax slabs (0%, 5%, 10%, 15%, 20%, 25%, 30%) instead of the previous 5-slab structure, providing more gradual tax progression.
Terms, Rules & Regulations
Income Tax Act, 2025
All income tax calculations are governed by the Income Tax Act, 2025, effective from April 1, 2026. The Act replaces the Income Tax Act, 1961 and introduces revised tax slabs, enhanced rebates, and updated compliance requirements. Taxpayers must file returns as per the new provisions.
Assessment Year & Financial Year
The Financial Year (FY) runs from April 1 to March 31. The Assessment Year (AY) is the year following the FY in which income is assessed and taxed. For FY 2026-27, the AY is 2027-28. ITR must be filed by the due date specified for the applicable AY.
Tax Regime Selection
The New Tax Regime is the default regime under the Income Tax Act, 2025. Taxpayers wishing to opt for the Old Regime must explicitly select it while filing their ITR. Once opted out of the New Regime, salaried individuals can switch back only once. Business/professional taxpayers have limited switching options.
Data Accuracy
Tax slabs, rebate limits, and deduction caps are sourced from the Income Tax Act, 2025 as notified by the Government of India. Surcharge rates, marginal relief provisions, and cess rates are applied as per statutory guidelines. Users are advised to cross-verify with official sources.
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