What are the 3 conditions for HRA exemption under Section 10(13A)?

HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) Rent paid minus 10% of Basic Salary + DA, and (3) 50% of Basic + DA for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for all other cities. The lowest of these three amounts is your tax-exempt HRA. The remaining HRA, if any, is fully taxable as salary income.

Which cities are considered Metro for HRA purposes?

Only four cities qualify as metro cities for HRA exemption under Income Tax rules: Delhi, Mumbai (including Thane and Navi Mumbai), Chennai, and Kolkata. All other cities — including Bangalore, Hyderabad, Pune, Ahmedabad, Surat, Jaipur — are classified as non-metro, where the 40% rule applies instead of 50%.

Can I claim HRA exemption if I live in my own house?

No — HRA exemption requires you to be actually paying rent. If you live in a self-owned property or a house owned by your spouse, you cannot claim HRA exemption even if HRA is a component of your salary. In such cases, the entire HRA received is taxable. You should instead claim home loan interest deduction under Section 24 if applicable.

Do I need a PAN card of my landlord to claim HRA?

Yes — if your annual rent exceeds ₹1 lakh (more than ₹8,333/month), you must provide your landlords PAN to your employer. If the landlord does not have a PAN, they must provide a declaration to that effect. Always keep rent receipts, rental agreement, and bank transfer records as proof. Failure to provide PAN may result in the HRA exemption being disallowed during ITR processing.

Can I claim both HRA exemption and home loan deduction?

Yes, in certain situations you can claim both. If you own a house in one city but work and rent in another city, you can claim HRA exemption for the rented accommodation and home loan interest deduction under Section 24 for the owned property simultaneously. However, if both properties are in the same city, the tax authorities may question the genuine need for renting.

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HRA Exemption Calculator — Section 10(13A)

Calculate HRA tax exemption — all 3 conditions, metro vs non-metro, monthly and annual amounts. Free HRA calculator India.

About this tool

Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) of the Income Tax Act. The HRA exemption is the minimum of three conditions: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary for metro cities (40% for non-metro). This calculator shows all three conditions, highlights the limiting factor, and gives you the exact monthly and annual exemption amount to declare in your ITR or share with your employer.

💡 HRA exemption is the minimum of 3 conditions under Section 10(13A)

City Type

Basic Salary + DA (Monthly)

₹

Basic salary plus Dearness Allowance per month

HRA Received (Monthly)

₹

Actual HRA component in your salary slip

Rent Paid (Monthly)

₹

Actual monthly rent paid to your landlord

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Fill in your salary details to calculate HRA exemption

How we calculate this

All calculations run entirely in your browser — no data is sent to any server. Here is exactly how this tool works:

Enter your monthly Basic Salary + DA (Dearness Allowance)
Enter the monthly HRA amount received from your employer as shown on your salary slip
Enter the monthly rent you actually pay to your landlord
Select Metro city (Delhi, Mumbai, Chennai, Kolkata — 50% limit) or Non-metro (40% limit)
See all three conditions, the limiting factor, and your monthly and annual HRA exemption

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