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HRA Calculator India 2026 - House Rent Allowance Exemption

Compute House Rent Allowance exemption under Section 10(13A) of the Income Tax Act, 1961. Lowest of 3 conditions under Rule 2A applies. Available only under old tax regime.

Step 1 - Inputs

Your HRA inputs

Reminder

HRA exemption available only under old tax regime. PAN of landlord required if annual rent exceeds Rs 1 lakh.

Step 2 - Result

HRA Exemption (least of 3)

Annual HRA Exemption

Rs 0

Taxable HRA: Rs 0

Breakdown of 3 conditions (Annual)

Exemption is least of the 3 conditions under Rule 2A. Verify with your final Form 16.

Rule 2A Logic

How HRA Exemption Is Computed

Actual HRA Received

Total HRA component shown on your annual payslips.

Rent - 10% of Salary

Annual rent paid minus 10 percent of Basic plus DA for the year.

50% or 40% of Salary

50 percent for Mumbai, Delhi, Kolkata, Chennai. 40 percent for all other cities.

Lowest is Exempt

Exemption equals the least of the 3 amounts. Balance HRA is taxable.

Documents Needed

Rent receipts, rent agreement, and landlord PAN if annual rent exceeds Rs 1 lakh.

Old Regime Only

HRA exemption is not available under the new tax regime (Section 115BAC).

Worked Example - Metro

Basic+DA Rs 40,000 / month. HRA Rs 20,000. Rent Rs 18,000. Mumbai.

  • Annual Basic+DA = 4,80,000 | Annual HRA = 2,40,000 | Annual rent = 2,16,000
  • Condition 1: Actual HRA = Rs 2,40,000
  • Condition 2: 2,16,000 - (10% of 4,80,000) = Rs 1,68,000
  • Condition 3: 50% of 4,80,000 = Rs 2,40,000
  • Exemption = least = Rs 1,68,000
  • Taxable HRA = 2,40,000 - 1,68,000 = Rs 72,000

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HRA Calculator FAQ

How is HRA exemption calculated in India?
HRA exemption under Section 10(13A) of the Income Tax Act, 1961 is the least of three amounts: actual HRA received, rent paid minus 10 percent of Basic plus DA, and 50 percent of Basic plus DA for metro cities (40 percent for non-metro). Rule 2A of the Income Tax Rules, 1962 prescribes the method.
Which cities qualify as metro for HRA?
Only four cities qualify as metro under Section 10(13A): Mumbai, Delhi, Kolkata, and Chennai. All other cities including Bengaluru, Hyderabad, Pune, and Ahmedabad are treated as non-metro for HRA purposes.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is available only under the old tax regime. The new tax regime under Section 115BAC removes most exemptions including HRA, LTA, and Section 80C deductions.
Is HRA exemption available if I live in my own house?
No. HRA exemption is granted only when the employee actually pays rent for residential accommodation. The employee cannot claim HRA exemption while living in a self-owned house.
Is PAN of landlord required for HRA claim?
Yes. If annual rent exceeds Rs 1 lakh, the employee must furnish the PAN of the landlord under CBDT Circular No 8/2013. If landlord has no PAN, a declaration in lieu of PAN is acceptable.
Can I claim HRA and home loan benefits together?
Yes, in specific cases. If the owned house is in a different city or is let out, both HRA under Section 10(13A) and home loan interest under Section 24(b) can be claimed. The income tax department may seek justification.

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