HRA Exemption Calculator (Section 10(13A))
Calculate tax-exempt House Rent Allowance for FY 2026-27 under Income Tax Act
Tax-Exempt HRA (Annual)
₹2,04,000
Taxable HRA (Annual)
₹36,000
Section 10(13A) Exemption Criteria:
1. Actual HRA Received: ₹2,40,000
2. Rent Paid minus 10% Basic: ₹2,04,000
3. 50% of Basic Salary: ₹3,00,000
How House Rent Allowance (HRA) Exemption Works in India
If you are a salaried employee receiving House Rent Allowance (HRA) as part of your salary structure and residing in rented accommodation, you can claim tax exemption under Section 10(13A) of the Income Tax Act, 1961.
Actual HRA Received
The total amount of HRA paid by your employer as recorded in your monthly salary slip.
Rent Paid - 10% Basic
Total annual rent paid minus 10% of your annual basic salary plus Dearness Allowance (DA).
50% or 40% of Basic
50% of basic salary for Metro cities (Mumbai, Delhi, Kolkata, Chennai) or 40% for Non-Metro cities.
Frequently Asked Questions (HRA Tax Exemption)
What is the formula for calculating HRA tax exemption in India?
Under Section 10(13A) of the Indian Income Tax Act, the exempt HRA is the minimum of three values: 1) Actual HRA received, 2) 50% of Basic Salary for metro cities (or 40% for non-metro), 3) Actual Rent Paid minus 10% of Basic Salary.
Which cities count as Metro for HRA 50% calculation?
For Income Tax HRA calculations, Metro cities are strictly defined as Mumbai, Delhi, Kolkata, and Chennai. All other major cities (like Bengaluru, Hyderabad, Pune, Gurgaon, Noida) are categorized as Non-Metro (40%).
Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA by paying rent to your parents provided you have a valid tenancy agreement, bank transfer proofs, and your parents report the rental income in their Income Tax Returns (ITR).
Abdulla Harris
Verified Legal EditorBuilding Owner & Landlord Legal Specialist
Abdulla Harris is an active property owner and rental operations specialist. He leads legal and compliance editorial at TenantsFlo, focusing on Indian Rent Control Acts, Model Tenancy Act 2021 implementations, state-level stamp duty guidelines, and automated landlord workflows.