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HRA Exemption Calculator

IT Act 1961: s.10(13A) read with Rule 2A · IT Act 2025: Sch. II — old regime only · FY 2026-27 (AY 2027-28)

Basic salary + DA for the year (₹)DA only if forming part of retirement benefits

HRA received for the year (₹)

Rent paid for the year (₹)

City of residence

Metro — 50% Non-metro — 40%

Metro: Delhi, Mumbai, Kolkata, Chennai

Computation of Exempt House Rent Allowance

u/s 10(13A) read with Rule 2A, IT Rules 1962 — FY 2026-27 (AY 2027-28)

Exemption is the least of the three limbs. Landlord PAN mandatory where annual rent exceeds ₹1,00,000. Not available under the new regime (s.115BAC). Rent to a relative must be genuine and evidenced.

About This Tool

The HRA Exemption Calculator computes the House Rent Allowance exemption available under Section 10(13A) read with Rule 2A of the Income Tax Act. The exemption is the least of three amounts: (a) actual HRA received, (b) rent paid minus 10% of basic salary, and (c) 50% of basic salary for metro cities or 40% for non-metros. This is one of the most commonly used salary exemptions for salaried employees and is available only under the old tax regime.

How to Use

Enter your Basic Salary + DA forming part of retirement benefits for the full year.

Enter total HRA received from employer for the year.

Enter total rent paid for the year.

Select city type: Metro (Mumbai, Delhi, Kolkata, Chennai) or Non-Metro.

Click Compute — the tool shows all three limbs, exempt HRA, and taxable HRA.

Frequently Asked Questions

Which cities are 'metro' for HRA?

Mumbai, Delhi, Kolkata, and Chennai are the four metro cities under Rule 2A. All other cities including Bangalore, Hyderabad, and Pune are non-metro for this calculation.

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

No. HRA exemption requires you to actually pay rent. If you live in your own house or a house owned by your spouse, you cannot claim HRA exemption.

Can I claim both HRA and home loan interest deduction?

Yes, if your rented accommodation is in a different city from your self-occupied property — both can be claimed simultaneously.

Is HRA available under the new tax regime?

No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime (Section 115BAC).