How is HRA tax exemption calculated under Section 10(13A)?

HRA tax exemption is the minimum of three amounts: 1) Actual HRA received, 2) Actual rent paid minus 10% of Basic Salary + DA, 3) 50% of Basic Salary + DA for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros.

Is HRA exemption available in the New Tax Regime?

No, House Rent Allowance (HRA) exemption under Section 10(13A) is only available under the Old Tax Regime. It is not available under the New Tax Regime.

Is HRA tax exemption available under the New Tax Regime?

No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. The New Tax Regime does not allow HRA deductions.

Can I pay rent to my parents and claim HRA exemption?

Yes, you can claim HRA by paying rent to your parents provided your parents own the property, you transfer the rent via banking channels, and your parents declare the rental income in their ITR.

HRA Exemption Calculator (House Rent Allowance) 2026

Calculate exact tax-exempt House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act.

Annual basic salary + DA

1000003000000

HRA received per year

01500000

Rent paid per year

01500000

City type

Metro = Delhi, Mumbai, Kolkata, Chennai. All others are non-metro.

Old regime only. HRA exemption under Section 10(13A) is not available under the new tax regime (115BAC) for most salaried employees. If you have opted for the new regime, your full HRA is taxable.

Tax-free HRA (old regime)

₹1.80 L

That's 75% of the HRA you received.

Exempt vs Taxable

Exempt

₹1.80 L

Taxable

₹60,000

The three bounds — how exempt HRA is computed

Section 10(13A) takes the least of these three numbers as your exempt HRA. The smallest one is binding — the others do not matter.

Bound	Value	Binding?
1. Actual HRA received	₹2.40 L
2. 50% of basic + DA	₹3.00 L
3. Rent paid − 10% of basic + DA	₹1.80 L	✓

About HRA Exemption

House Rent Allowance (HRA) is a salary component that is partially tax-exempt under Section 10(13A) of the Income Tax Act — but only under the old regime. The new regime does not allow HRA exemption.

To claim HRA, you must be a salaried employee, receive HRA as part of your salary, actually pay rent, and not own the house you are living in.

Formula

Exempt HRA = min(A, B, C)

A = 1. Actual HRA received
B = 2. 50% of basic + DA / 2. 40% of basic + DA
C = 3. Rent paid − 10% of basic + DA

Quick tips

If annual rent > ₹1 lakh, you must report your landlord's PAN.
You can claim HRA even if you pay rent to your parents (with proof — rent agreement + receipts + bank transfers).
HRA + Home Loan interest can both be claimed if you live in a different city than your owned house.
If you do not receive HRA but pay rent, you can instead claim Section 80GG (capped at ₹60,000/year).

References

HRA Tax Exemption FAQs

HRA exemption is the minimum of three amounts: (1) Actual HRA received from employer, (2) Actual rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities.

💻

Free Developer REST API AvailableBuilding a fintech app or blog? Integrate our free, open-CORS JSON REST APIs for high performance calculations.

View API Docs →

Smart Scheme Cross-Linking Engine