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Type your Basic, HRA received, rent paid, and metro/non-metro status. See exactly which of the three Section 10(13A) rules wins — and how much HRA is taxable vs exempt.
Metro = Mumbai, Delhi, Kolkata, Chennai (50% limit). Everywhere else is non-metro (40%).
HRA exempt under Section 10(13A)
₹15,000
Per month · taxable HRA: ₹10,000
Exempt = least of these three
Your HRA exemption is the smallest of: (1) actual HRA received, (2) rent paid minus 10% of (Basic + DA), and (3) 50% of (Basic + DA) for metro cities or 40% for non-metro. The calculator shows which rule wins.
Only four cities qualify as 'metro' for HRA purposes — Mumbai, Delhi, Kolkata, and Chennai. Bengaluru, Hyderabad, Pune, Ahmedabad, and every other Indian city use the 40% non-metro limit even though they're large cities.
HRA exemption is only available if you're filing under the old tax regime. The new regime offers lower headline rates but removes most exemptions, including HRA. Compare both for your numbers before picking.
Under Section 10(13A) of the Income Tax Act, the exempt portion of your HRA is the LEAST of three values: (1) actual HRA received from your employer, (2) rent paid minus 10% of your salary (Basic + DA), and (3) 50% of salary if you live in a metro city (Mumbai, Delhi, Kolkata, Chennai) or 40% otherwise. The remaining HRA above the exemption is added to your taxable income.
Only four cities are classified as 'metro' under the Income Tax Act for HRA purposes: Mumbai, Delhi, Kolkata, and Chennai. All others — including Bengaluru, Hyderabad, Pune, Ahmedabad, Gurgaon, Noida — use the 40% non-metro limit. This is a long-standing definition that hasn't been updated to reflect modern city sizes.
Yes, if you genuinely pay rent to your parents. The parents must declare that rental income on their own ITR and ideally there should be a rent agreement plus a record of rent transfers (bank statements). The IT department has rejected claims with no paper trail. Cash 'rent' to family without documentation is a red flag.
No. The new tax regime (default from FY 2023-24) offers lower headline rates but removes most exemptions and deductions, including HRA, LTA, Section 80C, and standard deduction beyond ₹50,000. If your HRA + other deductions exceed roughly ₹2.5–3 lakh per year, the old regime usually wins; otherwise the new regime's lower rates often net you more take-home.
Your employer needs PAN of the landlord (mandatory if annual rent > ₹1 lakh), a rent agreement or rent receipts, and bank statements showing the rent transfers. Receipts should include the landlord's name, your name, address, period, amount, and signature. Cash rent without proof is risky during scrutiny.
No. This is an educational tool that applies the Section 10(13A) + Rule 2A formula. It assumes standard Basic + DA composition and doesn't model variable allowance components, leave-encashment adjustments, or part-year residence changes. For filing, use a chartered accountant or the IT Department's official portal.
Comparing old vs new regime? Run the India salary calculator.
For information only — not financial, tax, or legal advice.
HRA exemption calculation uses Section 10(13A) of the Indian Income Tax Act. Available only under the old regime. Variable allowance components, leave encashment, and part-year residence changes are not modelled. Always verify with an official source and a licensed professional before filing, borrowing, or transacting. Read the full disclaimer.
ExpenseFlow tags your monthly rent debit as a recurring expense, so when filing season hits you have a clean record without dig-through-statements stress.
