Calculate your HRA tax exemption under Section 10(13A). Adjust the values to see how much of your HRA is tax-free.

How HRA Exemption is Calculated

The tax-exempt portion of your HRA is the minimum of these three:

  1. Actual HRA received from your employer.
  2. 50% of basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata), or 40% for non-metro cities.
  3. Rent paid minus 10% of basic salary.

The rest of your HRA is added to your taxable income.

Example

If your basic salary is ₹50,000/month, HRA is ₹20,000/month, and you pay ₹18,000/month rent in Bangalore (non-metro):

  • Actual HRA = ₹20,000
  • 40% of basic = ₹20,000
  • Rent - 10% of basic = ₹18,000 - ₹5,000 = ₹13,000

Minimum = ₹13,000/month is tax-exempt. The remaining ₹7,000/month is taxable.

Important Notes

  • HRA exemption is only available under the old tax regime. The new tax regime does not allow HRA deductions.
  • You need rent receipts as proof. For rent above ₹1 lakh/year, you also need your landlord’s PAN.