scriptiii
100% Client-Side

Least of three, section 10(13A)

HRA exemption calculator

See all three tests at once and which one decides your exemption — the number an employer needs before allowing it in payroll.

Short answer: the exemption is the smallest of three numbers — HRA received, rent paid minus 10% of basic + DA, and 50% (four metro cities) or 40% of basic + DA. Enter the yearly figures and the page shows which test decided it.

Worked example

Basic + DA ₹6,00,000, HRA received ₹2,40,000, rent paid ₹2,64,000, non-metro. Test one is ₹2,40,000. Test two is ₹2,64,000 − ₹60,000 = ₹2,04,000. Test three is 40% of ₹6,00,000 = ₹2,40,000. The exemption is ₹2,04,000 and the remaining ₹36,000 of HRA is taxable.

What this page does not do

It does not compare the old and new regimes, does not apply the standard deduction or chapter VI-A limits, and does not file anything. Those belong to a tax calculator and to your return; this page answers one question precisely rather than five approximately.

HRA questions

How is HRA exemption calculated?

It is the least of three figures: the HRA actually received, the rent paid minus 10% of basic salary plus dearness allowance, and 50% of that salary in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). The smallest one is exempt; the rest is taxable.

Can I claim HRA in the new tax regime?

No. The new regime under section 115BAC does not allow the HRA exemption at all. This calculator works out the section 10(13A) figure that applies under the old regime, and it does not know which regime you chose.

Does the calculator know my city classification?

It asks. Only four cities are metro for this purpose — Delhi, Mumbai, Kolkata and Chennai — so a metro-tagged city like Bengaluru or Hyderabad uses the 40% figure. Getting that wrong is the most common reason an expected exemption turns out smaller.

What proof is needed for the claim?

Rent receipts with the landlord signature, the landlord PAN once annual rent crosses ₹1,00,000, and often a rent agreement. Employers usually collect these before allowing the exemption in payroll.

Related tools

Rent receipt generatorThe proof the exemption needs.GST calculatorThe other deduction most payslips carry.Salary slip generatorWhere the HRA component is printed.