WealthJot.ai
WealthJot.ai
🏘️ HRA Calculator
Calculate HRA exemption under Section 10(13A) for old tax regime

HRA: hra exemption is ₹2.40 L, based on the entered inputs.

Formula

HRA Exemption = minimum of: HRA received, Rent Paid − 10% of Basic Salary, 50% of Basic Salary (metro) or 40% (non-metro)

Worked example
InputValue
Basic Salary (Annual)₹6,00,000
HRA Received (Annual)₹2,40,000
Rent Paid (Annual)₹3,00,000
Metro CityYes
HRA Exemption₹2,40,000
Taxable HRA₹0
Basic Salary Component₹3,00,000
Rent Paid − 10% of Basic₹2,40,000
Tax Saved (30% slab)₹72,000

How HRA exemption is calculated

House Rent Allowance is partially tax-free under Section 10(13A) — but only in the old tax regime, and only if you actually pay rent. The exempt amount is the minimum of three numbers, which is exactly what the calculator computes.

Exempt HRA = min( actual HRA received, rent paid − 10% of basic, 50% of basic (metro) or 40% (non-metro) )
Basic = basic salary + DA. Metro = Delhi, Mumbai, Kolkata, Chennai. Whatever remains of the HRA is taxable.
ExampleBasic ₹50,000/month, HRA received ₹20,000, rent ₹18,000 in Bengaluru (non-metro): the three limbs are ₹20,000 · ₹13,000 (18,000 − 5,000) · ₹20,000 (40% of basic). Exemption = ₹13,000/month (₹1.56 lakh/year); the remaining ₹7,000/month of HRA is taxed. Notice the binding limb is usually “rent − 10% of basic” — raising your rent declaration doesn’t help beyond the actual rent you can prove.
Common mistakeClaiming HRA while on the new regime (it has no HRA exemption — the allowance is fully taxable there), or paying rent to a parent without a real trail. Rent to family is legal if it’s genuine: actual bank transfers, a rent agreement, and the parent declaring the rent as income. Landlord PAN is mandatory beyond ₹1 lakh/year of rent.
✓ You learnedHRA exemption = the minimum of three limbs (HRA received · rent − 10% basic · 50/40% of basic), old regime only. If HRA is a big part of your package and your rent is real, it’s often the single deductionAn amount subtracted from income before tax. that swings the old-vs-new regime decision — run both calculators together.
FAQs
Can I claim both HRA and home-loan interest?

Yes, legitimately — if you pay rent where you live and work while owning (and servicing a loan on) a house elsewhere, or even in the same city with a genuine reason (e.g. the owned house is far from your workplace or under construction). Both claims must be real and documentable; this combination is a common scrutiny trigger, so keep the paper trail clean.

I don’t get HRA in my salary — can I still deduct rent?

Not under 10(13A), but Section 80GG (old regime) allows a smaller deduction — the least of ₹5,000/month, 25% of total income, or rent − 10% of income — provided neither you nor your spouse owns a home in your city. It’s capped and modest, but better than nothing for rent-payers without an HRA component.