HRA Exemption Calculator - Section 10(13A) FY 2025-26
Calculate your exact HRA exemption instantly. Enter your Basic salary, actual HRA received, monthly rent paid, and city type — the calculator applies the 3-condition rule and shows the minimum exempt amount.
HRA Exemption Calculator FY 2025-26
Enter annual figures. For monthly calculations, enter monthly values and divide the result by 12.
Basic + DA: The HRA exemption formula uses Basic + DA (Dearness Allowance that forms part of salary for retirement benefits). For most private sector employees, DA is zero — use only Basic salary. For government employees, enter both.
If you paid rent for only part of the year (job change, moved cities, started renting mid-year), enter the number of months you paid rent. Leave at 12 if you paid rent all year.
HRA Exemption Result
Lowest of the 3 conditions below
How HRA Exemption is Calculated - The 3-Condition Rule
Under Section 10(13A) read with Rule 2A of the Income Tax Rules, HRA exemption is always the minimum (lowest) of these 3 amounts. You cannot choose — the law mandates the lowest.
Actual HRA Received
The HRA component as stated in your salary slip and Form 16 Part B.
Rent Paid - 10% of Basic+DA
Actual rent paid minus 10% of Basic + DA salary. If this is negative or zero, HRA exemption is NIL.
% of Basic+DA (City-based)
50% for metro cities, 40% for all other cities. Applied on Basic + DA.
Worked Example - Annual Calculation
Given (Annual figures)
3-Condition Calculation
Rent - 10% of ₹7,20,000
Metro city 50%
Taxable HRA = ₹2,88,000 - ₹1,68,000 = ₹1,20,000
Metro vs Non-Metro Cities for HRA
Only 4 cities qualify as metro for HRA purposes — regardless of how big or expensive a city is.
Metro Cities — 50% of Basic+DA
Non-Metro Cities — 40% of Basic+DA
All cities not in the above list — including:
*Noida and Gurgaon are part of NCR but are technically Uttar Pradesh and Haryana — NOT Delhi. They are non-metro for HRA purposes. Only Delhi (Delhi UT) is metro.
City where you reside matters — not your employer's city. If your office is in Delhi but you live and pay rent in Noida, you use the non-metro (40%) rate. Conversely, if you live and pay rent in Delhi but work in Noida, you use the metro (50%) rate. The city of your rented accommodation determines the applicable percentage.
Special Cases - Partial Year, Job Change & Rent to Parents
Partial Year / Mid-Year Rental
If you paid rent for only part of the year (e.g. rented from July to March = 9 months), the exemption is calculated only for those 9 months.
Job Change Mid-Year
If you changed jobs and both employers gave HRA, calculate exemption separately for each employment period. The total exemption for the year is the sum of both periods.
Paying Rent to Parents
You can claim HRA by paying rent to your parents — but the arrangement must be genuine.
- Parents must own the property
- Rent must actually be paid (bank transfer)
- Parents must show it as rental income in their ITR
- You cannot pay rent to spouse
- You cannot own the property yourself
HRA + Home Loan Together
You can claim both HRA exemption AND home loan interest deduction (Sec 24) simultaneously — if the situations genuinely justify both.
- You work in City A and rent there
- Your home loan property is in City B (under construction or rented out)
- This is a common scenario for transferable jobs or long-distance properties
- Scrutiny risk increases — keep strong documentation
Documents Required to Claim HRA Exemption
Rent Receipts
- Monthly rent receipts from landlord
- Must contain: date, amount, landlord name, address, signature
- Revenue stamp required if cash payment above ₹5,000
- Required to submit to employer for TDS if annual rent > ₹1 lakh
Rent Agreement
- Registered or notarised rent agreement preferred
- Shows property address, monthly rent amount, tenure
- Not mandatory to submit to employer but useful for scrutiny
Landlord's PAN
- Mandatory if annual rent exceeds ₹1,00,000 (monthly > ₹8,333)
- Must submit to employer for Form 12BB
- If landlord does not have PAN, get declaration to that effect
- For parents: their PAN + proof of property ownership
Bank Statements
- Bank transfer record proving rent was actually paid
- Critical for rent paid to parents — cash payments are risky
- Keep for 6 years — IT Dept can scrutinise past returns
How to Claim HRA Exemption in ITR
Submit to Employer
Submit rent receipts and landlord PAN to employer via Form 12BB before year-end to reduce TDS from salary.
Check Form 16
Employer reflects exempt HRA in Form 16 Part B under Section 10(13A). Verify the amount matches your calculation.
Select Old Regime
HRA exemption is only available in Old Regime. Ensure you select Old Regime in ITR-1 or ITR-2.
Fill Schedule EI
In ITR-1 or ITR-2, the HRA exemption flows automatically from the salary details. No receipts are uploaded to the portal.
Keep Records 6 Years
Retain all rent receipts, rent agreement, bank statements, and landlord PAN for at least 6 years in case of scrutiny notice.
Employer not considering full HRA? If your employer has underestimated your HRA exemption (deducted more TDS), you can still claim the correct, higher exemption in your ITR. The ITR calculation overrides employer TDS — you get the excess TDS as a refund after filing.
Frequently Asked Questions
File Your ITR with Maximum HRA Benefit
CA-assisted ITR filing from ₹499. We calculate your exact HRA exemption, compare Old vs New Regime, and file accurately.
indiantaxplanning.in · CA-verified · Updated March 2026
Related Calculators & Guides
