What makes this calculator different
Computes the Section 10(13A) min-of-three exemption with a metro / non-metro switch. Only Delhi, Mumbai, Kolkata and Chennai count as metros for the 50% limit; everywhere else uses 40%.
Common Questions
HRA Exemption Calculator FAQs
Common questions about the HRA Exemption Calculator and how to read its results.
Q01
How is HRA exemption calculated?
Exempt HRA is the minimum of: (1) Actual HRA received, (2) 50% of basic salary (40% non-metro), (3) Rent paid minus 10% of basic salary. The calculator computes all three and picks the lowest — which is the exempt amount under Section 10(13A).
Q02
What is a 'metro' city for HRA?
Per the Income Tax Act, only Delhi, Mumbai, Kolkata, and Chennai qualify as metros (50% basic exemption). Bangalore, Hyderabad, Pune, Ahmedabad are NOT metros for HRA purposes (40% basic exemption applies).
Q03
Can I claim HRA if I live in my own house?
No. HRA exemption requires actual rent paid to a third party. However, you can still claim home-loan interest deduction under Section 24(b) up to Rs 2L for a self-occupied property under the old regime.
Q04
Is HRA available under the new tax regime?
No. HRA exemption is one of the deductions disallowed under the new regime. If HRA is a major component of your salary, the old regime may still be cheaper — run both via our income-tax calculator.
Q05
Do I need to submit rent receipts to my employer?
Yes if claiming through payroll. Monthly rent receipts + the landlord's PAN (if annual rent >Rs 1L) are required. For high rents (>Rs 50K/month), TDS at 5% is also applicable under Section 194-IB.
Q06
Can I claim HRA if I pay rent to my parents?
Yes — and the parents must report the rental income in their ITR. Use a rent agreement + bank transfer + your parent's PAN. The arrangement must be genuine; tax officers occasionally scrutinise sham parent-rent claims.
Compare HRA Exemption Calculator results with Jay
Send your details on WhatsApp for a lender-rate comparison. Response time and next steps vary by enquiry and lender.