⌖ Income Tax & TDS
HRA Exemption Calculator.
Section 10(13A) — three-way minimum.
⌖ Inputs
⌖ Result
HRA exempt under §10(13A)
₹1,80,000
Limited by rent paid less 10% of (Basic + DA).
(i) Actual HRA received
₹3,00,000
(ii) 50% of (Basic + DA)
₹3,00,000
(iii) Rent paid − 10% of (Basic + DA)
₹1,80,000
HRA received
₹3,00,000
Less: exempt portion
₹-1,80,000
Taxable HRA
₹1,20,000
Annual rent above ₹1,00,000 requires you to furnish the landlord’s PAN to the employer to claim HRA exemption.
⌖ §I / Formula
The math,
in the open.
HRA exemption is governed by Section 10(13A) of the Income Tax Act read with Rule 2A. The exempt amount is the minimum of three figures — the actual HRA received, a percentage of basic salary (plus DA, where DA forms part of retirement benefits), and the rent paid above a 10% threshold of basic.
Exempt HRA = min(
Actual HRA,
(50% / 40%) × (Basic + DA),
Rent paid − 10% × (Basic + DA)
)
For HRA purposes only four cities are notified as metro — Mumbai, Delhi, Kolkata and Chennai. Every other city, including Bengaluru, Hyderabad and Pune, counts as non-metro and attracts the 40% cap, not 50%.
HRA is allowable only under the Old Regime — if you opt for the New Regime, the exemption is forfeited regardless of how much rent you pay. Use the Income Tax Calculator to compare the two regimes side-by-side.