HRA Exemption Calculator India
A free House Rent Allowance (HRA) exemption calculator for India. Find out how much of the HRA component of your salary is exempt from income tax under Section 10(13A) of the Income Tax Act, and how much remains taxable. The calculator applies the statutory "least of three" rule using your basic salary plus dearness allowance, the actual HRA received, the rent you pay and whether you live in a metro or non-metro city.
What this HRA calculator does
- Applies the Section 10(13A) least-of-three rule automatically
- Shows the HRA exempt amount and the taxable HRA balance
- Supports metro (50% of basic) and non-metro (40% of basic) cities
- Breaks down all three components so you can verify the calculation
- Helps CA firms and chartered accountants with client tax planning
- No signup required
HRA Exemption Calculator
HRA Exemption Calculator (India)
Find how much of your House Rent Allowance is exempt from tax under Section 10(13A) using the least-of-three rule, with metro and non-metro support.
Enter monthly basic pay plus dearness allowance
Metro = Delhi, Mumbai, Kolkata, Chennai
HRA Exempt (Section 10(13A))
₹14,000
Taxable HRA: ₹6,000
Least of three
This calculator provides an estimate of HRA exemption under Section 10(13A) for employees opting for the old tax regime. Actual exemption depends on your salary structure, rent paid and supporting documents. Please confirm with a qualified chartered accountant before filing.
What is HRA exemption under Section 10(13A)?
House Rent Allowance (HRA) is a component of salary paid by employers to help employees meet rent costs. Under Section 10(13A) of the Income Tax Act, read with Rule 2A, a part of the HRA you receive is exempt from income tax if you actually pay rent for accommodation you occupy. The remaining portion is added to your taxable salary.
The exemption is not the full HRA you receive. Instead, the law prescribes a "least of three" formula, and only the smallest of the three figures is exempt. This calculator applies that rule for you so you can see both the exempt amount and the taxable HRA in seconds.
How HRA exemption is calculated (least of three rule)
The HRA exempt from tax is the lowest of these three amounts:
- Actual HRA received from your employer.
- Rent actually paid minus 10% of your basic salary (basic + dearness allowance).
- 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% of basic salary for any non-metro city.
How to use this HRA calculator
Enter your monthly basic salary (including dearness allowance, if any), the monthly HRA you receive and the monthly rent you pay. Then choose whether your rented home is in a metro or non-metro city. The calculator instantly shows the exempt HRA, the taxable HRA and the full three-way breakdown so you can verify each figure. If you prefer annual numbers, simply enter annual figures throughout — the formula works the same way as long as you stay consistent.
Tip: HRA exemption is available only under the old tax regime, so use this alongside our income tax calculator to decide whether the old or new regime saves you more tax.
Worked example
Suppose your basic salary is ₹40,000 per month, you receive ₹20,000 HRA and pay ₹18,000 rent in a metro city. The three figures are: actual HRA ₹20,000; rent minus 10% of basic = ₹18,000 − ₹4,000 = ₹14,000; and 50% of basic = ₹20,000. The least of these is ₹14,000, so ₹14,000 is exempt and the remaining ₹6,000 of HRA is taxable each month.
HRA exemption for CA firms and chartered accountants
For CA firms, accurate HRA exemption working is a routine part of salary structuring and ITR preparation. Chartered accountants use it to advise salaried clients on the right rent documentation (agreements, receipts, the landlord PAN where rent exceeds ₹1 lakh a year) and to compare the old regime against the new regime. This free tool lets your team run client scenarios quickly during tax planning without rebuilding the formula in a spreadsheet.
HRA exemption — three components (metro example)
| Component | Formula | Example value |
|---|---|---|
| Actual HRA received | HRA from employer | ₹20,000 |
| Rent − 10% of basic | ₹18,000 − (10% × ₹40,000) | ₹14,000 |
| 50% of basic (metro) | 50% × ₹40,000 | ₹20,000 |
| HRA exempt (least of three) | Lowest of the above | ₹14,000 |
| Taxable HRA | HRA received − exempt | ₹6,000 |
Frequently Asked Questions
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