HRA Calculator
Calculate your House Rent Allowance tax exemption under Section 10(13A) β compare all 3 conditions and see exactly how much of your HRA is tax-free.
β Free Β· No sign-up Β· Works in browserLast updated: April 2026 Β· Tested on Chrome, Firefox, Edge, SafariUse HRA Calculator
Metro cities: Delhi, Mumbai, Chennai, Kolkata
How to Use HRA Calculator
Enter your monthly Basic Salary β the fixed component of your salary before any allowances, exactly as shown on your payslip. HRA exemption under Section 10(13A) is calculated as a percentage of Basic Salary, not your gross or CTC figure.
Enter the HRA (House Rent Allowance) you actually receive from your employer each month, and the actual Rent Paid each month for your accommodation. If you don't pay rent or don't receive HRA, the exemption will correctly show as zero.
Select your city type: Metro (Delhi, Mumbai, Chennai, Kolkata) or Non-Metro. This changes the 50%/40%-of-Basic condition used in the exemption formula β metro cities get the higher 50% limit because of higher average rents.
Review the three conditions computed side by side β Actual HRA Received, 50%/40% of Basic Salary, and Rent Paid minus 10% of Basic Salary. The smallest of the three (marked with a β) is your exempt HRA amount under the Income Tax Act; the rest of your HRA is added to taxable income.
Check the monthly and annual summary cards for your exact exemption and taxable HRA figures β use the annual figure when filling in HRA exemption details for ITR filing or submitting rent receipts to your employer for TDS purposes.
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About HRA Calculator
AWE-OS HRA Calculator computes your House Rent Allowance tax exemption under Section 10(13A) of the Income Tax Act for salaried employees in India who pay rent and receive HRA as part of their salary. The exemption is the smallest of three amounts: the actual HRA received from your employer, 50% of Basic Salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities, and actual rent paid minus 10% of Basic Salary. The calculator shows all three conditions side by side with the applicable minimum clearly marked, along with monthly and annual figures for both the exempt and taxable portions of your HRA. This exemption is available only under the Old Tax Regime β it is not available if you have opted into the New Tax Regime, which removes most exemptions and deductions in exchange for lower slab rates. Getting the correct exemption figure matters for accurate TDS deduction by your employer and for filing your income tax return without a mismatch that could trigger a notice.
Key Features
- β¦Computes the exact Section 10(13A) minimum-of-three-conditions formula used by every Indian employer's payroll system
- β¦Metro (50% of Basic) vs Non-Metro (40% of Basic) toggle covering Delhi, Mumbai, Chennai, Kolkata correctly
- β¦Real-time calculation β results update instantly as you type, with no submit button
- β¦Side-by-side breakdown of all 3 conditions with a clear checkmark on whichever value is the exemption
- β¦Monthly and annual figures for both HRA Exemption and Taxable HRA in one view
- β¦100% browser-based β your salary and rent figures are never sent to any server
Who Should Use This Tool
- βSalaried employees under the Old Tax Regime submitting rent receipts to their HR/payroll team for accurate monthly TDS deduction
- βEmployees choosing between the Old and New Tax Regime who need their exact HRA exemption amount to compare total tax liability under both
- βAnyone who recently moved to a metro city (or out of one) and needs to recompute their exemption under the new 50%/40% threshold
- βEmployees filing their own ITR who need to independently verify the HRA exemption figure shown in their Form 16
How to Use HRA Calculator
- Enter your monthly Basic Salary exactly as shown on your payslip
- Enter the monthly HRA you receive from your employer and the monthly rent you actually pay
- Select Metro or Non-Metro based on your city of residence
- Review the 3-condition breakdown β the smallest value, marked with a β, is your exempt HRA
- Note the monthly and annual Exemption and Taxable HRA figures for your ITR or rent-receipt submission
Why Choose AWE-OS HRA Calculator
- βShows the full 3-condition comparison, not just the final number β so you can see exactly why your exemption is what it is, the same way a payroll system computes it
- βCorrectly distinguishes the 4 metro cities from every other Indian city, a detail many simplified calculators get wrong
- βNo sign-up, no data storage β your salary details stay in your browser only
Frequently Asked Questions
Is HRA exemption available if I live with my parents and pay them rent?
Yes, provided the arrangement is genuine and documented: you pay rent to your parent(s) via bank transfer (not cash), your parent(s) own the property, and they declare the rental income in their own income tax return. The Income Tax Department has upheld such claims in several tribunal rulings when properly documented, but it is scrutinised more closely than renting from an unrelated landlord β keep bank transfer records and a rent agreement.
What happens if my rent exceeds βΉ1 lakh a year?
If your annual rent paid exceeds βΉ1,00,000 (roughly βΉ8,333/month), your employer will require your landlord's PAN in addition to rent receipts before allowing HRA exemption in monthly TDS calculations. Without the landlord's PAN, your employer may not process the exemption at source, though you can still claim it directly while filing your ITR if you have valid rent receipts.
Can I claim HRA exemption and home loan interest deduction at the same time?
Yes, but only if the rented accommodation and the home you own (on which you're claiming home loan interest under Section 24) are in different cities, or if you can demonstrate a genuine reason you don't live in your own house (e.g., it's too far from your workplace). Claiming both for the same city without justification is a common scrutiny trigger.
Why does the calculator show my exemption as zero when I enter valid numbers?
This happens when your Rent Paid minus 10% of Basic Salary works out to zero or negative β usually because your rent is low relative to your Basic Salary, or you entered no rent at all. In that case, condition (3) of the formula becomes the binding minimum at zero, meaning none of your HRA is exempt for that month. This is the correct, intended behaviour of Section 10(13A), not a calculation error.
Should I choose the Old or New Tax Regime if I have a large HRA exemption?
It depends on your total exemptions and deductions relative to the tax saved by the New Regime's lower slabs. As a rough guide, if your HRA exemption plus 80C/80D and other deductions are large relative to your income, the Old Regime often works out cheaper; if you claim few deductions, the New Regime usually wins. Run your numbers through both regimes using the AWE-OS Tax Calculator with and without this HRA exemption included to compare your actual total tax liability.
Honest limitation: This calculator applies the Old Tax Regime Section 10(13A) formula only β HRA exemption does not apply under the New Tax Regime, and it does not verify your rent receipts or landlord PAN documentation.
Tips & Best Practices for HRA Calculator
- π‘Use your exact monthly Basic Salary, not your gross or CTC figure β the 50%/40% and 10% conditions in the HRA formula are legally defined against Basic Salary only, and using gross salary will overstate your exemption.
- π‘If your rent varies month to month (a new lease, a rent hike mid-year), calculate the exemption separately for each period at the applicable rent and salary figures rather than using a single annual average, since your employer's payroll does the same month-by-month.
- π‘Keep rent receipts and, for annual rent above βΉ1 lakh, your landlord's PAN β without these your employer may not process the exemption in monthly TDS, forcing you to claim it directly (and prove it) at ITR filing time instead.
- π‘If you're comparing Old vs New Tax Regime, run your numbers through the AWE-OS Tax Calculator twice β once including your HRA exemption (Old Regime) and once without any exemptions (New Regime) β since HRA exemption is not available under the New Regime at all.
- π‘Double-check your city classification β only Delhi, Mumbai, Chennai, and Kolkata qualify for the 50% metro rate; every other city, including Bengaluru, Hyderabad, and Pune, uses the 40% non-metro rate regardless of local rents.
Common Mistakes to Avoid with HRA Calculator
- βEntering gross salary or CTC instead of Basic Salary β this is the single most common HRA calculation error and always overstates your exemption relative to what your employer's payroll or the tax department will accept.
- βAssuming you can claim HRA exemption while paying no rent, or paying rent to a spouse β HRA exemption requires an actual, provable rent payment, and rent paid to a spouse is generally not accepted as a genuine landlord-tenant arrangement.
- βForgetting that HRA exemption disappears entirely under the New Tax Regime β if your employer defaults you into the New Regime, any HRA exemption you expect to claim will not apply unless you actively opt for the Old Regime.
- βNot retaining rent receipts because your employer didn't ask for them β if the exemption is later questioned during ITR processing or scrutiny, you need documentary proof of rent paid, not just this calculator's output.
- βUsing the wrong metro/non-metro classification for a city you recently moved to or from β the 50%/40% distinction applies based on your actual place of residence during the period the salary and rent relate to, not your permanent address.
Frequently Asked Questions
What is the HRA exemption formula under Section 10(13A)?
Which cities count as "metro" for the 50% HRA limit?
Can I claim HRA exemption if I donβt pay any rent?
Do I need rent receipts or a rent agreement to claim HRA exemption?
Is HRA exemption available under the New Tax Regime?
Built & maintained by Team AWE-OS
This tool is developed in-house and manually re-tested on Chrome, Firefox, Edge, and Safari after every update, following our tool testing policy. Found a bug? Tell us β fixes are usually shipped within days.