Upgraded Slabs: 30%, 20%, 10%

HRA & Tax Exemption Calculator

Determine your monthly House Rent Allowance (HRA) entitlement under the revised post-50% DA rules and calculate your maximum tax exemption under Section 10(13A) of the Income Tax Act.

HRA & Rent Exemption Assessment

Enter your pay and rental expenditure to compute tax-free HRA

HRA Entitlement & Tax Relief Breakdown

Sec 10(13A) Applied
Monthly HRA Entitlement ₹0 30% of Basic Pay
Annual Tax-Exempt HRA ₹0
Taxable HRA: ₹0 / year

Section 10(13A) Three-Condition Comparison

1. Actual HRA Received (Annual): ₹0
2. Rent Paid minus 10% of Salary (Basic + DA): ₹0
3. 50% of Salary (Metro Location): ₹0
Permissible Tax Exemption (Least of 1, 2, 3): ₹0

Current HRA Slabs (DA > 50%)

  • Class X Cities: 30% Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune (Min ₹5,400)
  • Class Y Cities: 20% Population 5 to 50 Lakhs (Min ₹3,600)
  • Class Z Cities: 10% All other rural locations (Min ₹1,800)

House Rent Allowance (HRA) Rules & Tax Exemption Under Section 10(13A)

House Rent Allowance is a statutory component paid to employees to meet accommodation expenses. For salaried individuals living in rented accommodations, Section 10(13A) of the Income Tax Act read with Rule 2A allows an exemption from taxable income.

Can HRA Exemption Be Claimed Under the New Tax Regime?

No. Under the New Tax Regime (Section 115BAC), HRA tax exemption is not available. To claim HRA exemption under Section 10(13A), an employee must opt for the Old Tax Regime during tax filing.

Frequently Asked Questions (HRA FAQs)

Q1: What counts as 'Salary' for HRA tax exemption?

For the purpose of Section 10(13A), salary is defined strictly as Basic Pay + Dearness Allowance (DA). It does not include Transport Allowance, Special Pay, or bonuses.

Q2: Can I claim HRA if I pay rent to my parents?

Yes. If you reside in a residential house owned by your parents, you can pay rent to them, obtain signed rent receipts, and claim Section 10(13A) exemption, provided your parents declare the rental receipts in their income tax return.