🇮🇳 India · Section 10(13A) · FY 2025-26

HRA Calculator India 2025-26

HRA exemption · Taxable HRA · Tax savings · Metro vs Non-metro · 3-condition formula

⚡ Key Rule: HRA exemption is the minimum of 3 conditions — actual HRA received, rent paid minus 10% of basic, and 50%/40% of basic. Only available under Old Tax Regime. Not available in New Regime.
HRA Exempt
₹0
tax-free amount
Taxable HRA
₹0
added to income
Tax Saved
₹0
at your slab rate
Salary Details (Annual)
₹
Annual basic salary
₹
Enter 0 if not applicable
₹
Annual HRA from employer
₹
Monthly rent × 12
City Type
🏙️ Metro City (50%)
🏠 Non-Metro City (40%)
Metro: Mumbai, Delhi, Chennai, Kolkata · Non-metro: all other cities including Bengaluru, Pune, Hyderabad
HRA Received
₹0
from employer
HRA Exempt
₹0
tax-free
Taxable HRA
₹0
added to income
Tax Saved
₹0
at 20% slab
Exemption %
0%
of HRA received
Effective HRA Rate
0%
of basic salary
The 3 Conditions — Minimum is Your Exemption
Condition 1: HRA received ₹0 —
Condition 2: Rent paid minus 10% of Basic+DA ₹0 —
Condition 3: 50% of Basic+DA (metro) ₹0 —
🛡️
Section 10(13A) Tax Saving
₹0 saved in taxes
HRA exemption reduces your taxable income
HRA exemption is available only under the Old Tax Regime. If you opt for the New Tax Regime, HRA exemption is not applicable. Ensure rent receipts are maintained and landlord PAN is provided if annual rent exceeds ₹1 lakh.

HRA Calculator India — Section 10(13A) Explained (FY 2025-26)

House Rent Allowance (HRA) is one of the most valuable tax exemptions available to salaried employees in India. Under Section 10(13A) of the Income Tax Act, a portion of your HRA is exempt from tax — but the calculation involves three conditions and the minimum of the three is your actual exemption.

The 3 Conditions Formula

Your HRA exemption is the minimum of these three amounts:

Section 10(13A) — Minimum of 3 Conditions
1
Actual HRA received from employer
2
Rent paid minus 10% of (Basic Salary + Dearness Allowance)
3
50% of Basic + DA for metro cities  ·  40% for non-metro cities

Metro vs Non-Metro Cities

Only four cities qualify as metro for HRA purposes — Mumbai, Delhi, Chennai, and Kolkata. If you live in Pune, Bengaluru, Hyderabad, Ahmedabad, or any other city, you fall under the non-metro 40% limit. This is a common mistake — many people in Bengaluru assume they get the 50% metro limit. They don’t.

HRA Exemption Only in Old Tax Regime

This is the most critical point. If you opt for the New Tax Regime (which has lower slab rates but no deductions), you cannot claim HRA exemption. Before choosing your regime, calculate whether your HRA + other deductions (80C, 80D) make the Old Regime more beneficial. Use our New vs Old Tax Regime Calculator to compare.

What Documents You Need

  • Rent receipts for every month — your employer needs these for Form 16
  • Rental agreement — not always mandatory but strongly recommended
  • Landlord PAN card — mandatory if annual rent exceeds ₹1,00,000 (₹8,333/month)
  • If paying rent to parents: they must declare the rent as income in their ITR
Frequently Asked Questions
Can I claim HRA if I live in my own house?+
No. HRA exemption is only available if you are actually paying rent for a house you don’t own. If you own the house you live in, the HRA received from your employer is fully taxable. There is no exemption available in this case.
Can I claim HRA and home loan interest simultaneously?+
Yes — in certain situations. If you own a house but live in a rented house in a different city for work, you can claim both HRA exemption (for the rented house) and home loan interest deduction under Section 24(b) (for the owned house). Both in the same city requires stronger justification but has been allowed by courts in specific cases.
Can I pay rent to my parents and claim HRA?+
Yes — this is completely legal and a popular tax-saving strategy. You pay rent to your parents, claim HRA exemption, and they declare the rent as income. If your parents are in the 0% tax slab (income below ₹3L for senior citizens above 60), the overall family tax outgo reduces significantly. Maintain rent receipts and a proper rental agreement.
What if my employer doesn’t provide HRA?+
If your salary structure doesn’t include HRA, you cannot claim HRA exemption under Section 10(13A). However, you can claim deduction under Section 80GG — the least of: ₹5,000/month, 25% of total income, or actual rent minus 10% of income.
Is Bengaluru, Pune, or Hyderabad a metro city for HRA?+
No. Only Mumbai, Delhi (NCR), Chennai, and Kolkata are metro cities for HRA exemption purposes as per the Income Tax Act. Bengaluru, Pune, Hyderabad, Ahmedabad, and all other cities — regardless of population — are treated as non-metro, giving you 40% of Basic + DA as the Condition 3 limit instead of 50%.
📌 HRA Quick Facts 2025-26
Section10(13A)
Metro cities50% of Basic
Non-metro cities40% of Basic
Tax regimeOld Regime only
Rent receipt neededYes
Landlord PAN if rent>₹1L/year
80GG (no HRA)₹60,000/yr
💡 HRA Strategy Tips
→Paying rent to parents is legal — saves tax if they’re in lower slab
→Keep rent receipts for all 12 months — required for Form 16
→Bengaluru, Pune, Hyderabad are NON-metro — 40% limit applies
→Compare regimes before choosing — HRA only works in Old Regime
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