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).

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).

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.

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.

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.

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.

Folio 30 · HRA Exemption Calculator

HRA Exemption Calculator

Reviewed by Jay Patel· Last reviewed: 25 Apr 2026stale

Jay Patel

Co-Founder & Chief Loan Advisor

Calculate HRA exemption for income tax purposes.

What makes this calculator different

Computes the canonical Section 10(13A) min-of-three exemption and surfaces the metro vs non-metro toggle correctly — only Delhi, Mumbai, Kolkata, Chennai are metros under the Income Tax Act, a detail most online HRA calculators get wrong.

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