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

House Rent Allowance (HRA) is paid by employers to help employees cover rental housing costs. Section 10(13A) of the Income Tax Act allows a part of this allowance to be tax-exempt based on specific conditions.

What are the three criteria for HRA tax exemption?

The tax-exempt HRA is the minimum of: (1) Actual HRA received, (2) Actual rent paid minus 10% of basic salary, or (3) 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities).

Can I claim HRA if I live in my own house?

No, you cannot claim HRA exemption if you reside in your own house or if you do not incur any actual expenditure on rent.

HRA Calculator

Calculate HRA tax exemptions under Section 10(13A) of the Income Tax Act. Compare metro vs non-metro exemptions based on basic salary, HRA received, and rent paid.

⚡ Interactive Calculation Engine Active

Please enable JavaScript in your browser to run live computations, 2D envelope diagrams, and export PDF reports.

How to Use HRA Calculator

Enter your Monthly Basic Salary + Dearness Allowance (DA).
Enter your Monthly HRA received from your employer.
Enter the actual Monthly Rent paid to your landlord.
Specify whether you reside in a metro city (Delhi, Mumbai, Kolkata, Chennai) or a non-metro city.
Review the calculated Exempted HRA (tax-free) and Taxable HRA amounts.

Understanding House Rent Allowance (HRA) Exemption

HRA is a major tax-saving component for salaried individuals in India. To claim HRA exemption under the Old Tax Regime, you must be a rent-paying tenant residing in a rented property. Note that HRA exemptions are not available if you choose the New Tax Regime.

Metro vs Non-Metro HRA Rules

The Income Tax rules classify only four cities as metros for HRA calculations: Mumbai, Delhi, Kolkata, and Chennai. For these four cities, HRA exemption limits are capped at 50% of Basic Salary + DA. For all other cities in India (including tech hubs like Bangalore, Hyderabad, and Pune), the limit is capped at 40% of Basic Salary + DA.

Frequently Asked Questions

What is HRA exemption under Section 10(13A)?: House Rent Allowance (HRA) is paid by employers to help employees cover rental housing costs. Section 10(13A) of the Income Tax Act allows a part of this allowance to be tax-exempt based on specific conditions.
What are the three criteria for HRA tax exemption?: The tax-exempt HRA is the minimum of: (1) Actual HRA received, (2) Actual rent paid minus 10% of basic salary, or (3) 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities).
Can I claim HRA if I live in my own house?: No, you cannot claim HRA exemption if you reside in your own house or if you do not incur any actual expenditure on rent.