Free Tool · Section 10(13A) · Old Regime · FY 2025-26
House Rent Allowance exemption calculator
Compute your House Rent Allowance exemption under Section 10(13A) of the Income Tax Act, 1961. The exemption is the minimum of three conditions — this tool shows all three clearly.
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 19027S · Updated July 2026
Your Details
Three-Condition Comparison — Section 10(13A)
Exempt House Rent Allowance = minimum of these three amounts
| Condition | Rule | Monthly | Annual | |
|---|---|---|---|---|
| Cond. 1: Actual House Rent Allowance Received | Actual amount from employer | ₹20,000 | ₹2,40,000 | |
| ★Cond. 2: Rent − 10% of Basic | ₹18,000 − 10% of ₹50,000 | ₹13,000 | ₹1,56,000 | MINIMUM |
| Cond. 3: 50% of Basic (Metro) | 50% for Delhi/Mumbai/Chennai/Kolkata | ₹25,000 | ₹3,00,000 |
Result
House Rent Allowance Received (Monthly)
₹20,000
House Rent Allowance Received (Annual)
₹2,40,000
Exempt House Rent Allowance (Monthly)
₹13,000
Exempt House Rent Allowance (Annual)
₹1,56,000
Taxable House Rent Allowance (Monthly)
₹7,000
Taxable House Rent Allowance (Annual)
₹84,000
Partial Exemption — ₹84,000 /year is taxable
The balance House Rent Allowance not covered by the minimum condition is added to your taxable salary.
Regime Note: This exemption is only available under the Old Regime. Under the New Regime (Section 115BAC), the entire House Rent Allowance received is taxable, but you receive a standard deduction of ₹75,000 instead. Use our Income Tax Calculator → to compare both regimes.
Annual rent exceeds ₹1,00,000 — Landlord PAN required
As per CBDT Circular No. 08/2013 dated 10 October 2013, you must collect and submit your landlord's PAN to your employer when claiming House Rent Allowance exemption on annual rent above ₹1,00,000.
Disclaimer: This is an estimate for guidance only. House Rent Allowance exemption claims are subject to employer verification, rent receipts, and other conditions. Verify with a qualified CA before filing.
Statutory Basis
Section 10(13A) r/w Rule 2A
Section 10(13A) of the Income Tax Act, 1961 read with Rule 2A of the Income Tax Rules, 1962.
Three-Condition Minimum
The exempt House Rent Allowance is the minimum of three amounts: (1) Actual House Rent Allowance received; (2) Actual rent paid − 10% of basic salary; (3) 50% of basic salary for employees in Delhi/Mumbai/Chennai/Kolkata; 40% of basic salary for other cities.
Taxable Portion
The balance (actual House Rent Allowance received − exempt House Rent Allowance) is included in taxable salary.
New Regime Restriction
House Rent Allowance exemption is not available under the new regime (Section 115BAC). Claim only under old regime.
PAN Requirement for Landlord
Rent receipts and landlord PAN are required for annual rent >₹1,00,000 as per CBDT Circular No. 08/2013 dated 10 October 2013.
Want to optimise your House Rent Allowance claim and overall tax outgo?
Our CAs can review your salary structure, regime selection, and maximise legitimate exemptions under the old regime.
Embed This Tool
<iframe src="https://www.harunraaj.com/tools/hra-exemption-calculator" width="100%" height="600" frameborder="0" title="House Rent Allowance exemption calculator"></iframe>Frequently Asked Questions
How is HRA exemption calculated?+
HRA exemption is the lowest of: (a) actual HRA received, (b) 50% of basic salary (metro) or 40% (non-metro), (c) actual rent paid minus 10% of basic salary. Source: Section 10(13A), Income Tax Act read with Rule 2A.
Which cities are considered metro for HRA purposes?+
Delhi, Mumbai, Chennai, and Kolkata are the four metro cities for HRA exemption — 50% of basic salary applies. All other cities, including Hyderabad, Bengaluru, and Pune, are non-metro — 40% applies. Source: Rule 2A, Income Tax Rules, 1962.
Can I claim HRA exemption and home loan deduction simultaneously?+
Yes. If you pay rent in a city where you work and have a home loan on property in another city (or a property you do not occupy), you can claim both HRA exemption and home loan deduction under Section 24(b). The claims are not mutually exclusive. Confirmed by multiple ITAT rulings.
Is HRA available under the new tax regime?+
No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime under Section 115BAC. It is an old regime-only benefit. Source: Section 115BAC(2), Income Tax Act.
What documents do I need to claim HRA?+
Rent receipts (for rent above ₹1L/year — PAN of landlord is mandatory), rental agreement, and employer Form 12BB declaration. From FY 2024-25, rent paid above ₹50,000/month requires TDS deduction at 5% under Section 194-IB.