Free Tool · Section 10(13A) · Old Regime · FY 2025-26
House Rent Allowance exemption calculator
Compute your House Rent Allowance exemption under Section 10(13A) of the Income Tax Act, 1961. The exemption is the minimum of three conditions — this tool shows all three clearly. Wondering whether Bengaluru is a metro for HRA? The configured city list and open verification note are shown below.
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 19027S · Updated July 2026
Formula
Exempt HRA = minimum of (actual HRA received, actual rent paid − 10% of basic salary, 50% of basic salary). The balance of HRA received is taxable.
Your Details
Is Bengaluru a metro for HRA?
CA-confirmed (Harun Raaj, 04-08-2026): metro list expanded effective 1 Apr 2026 — i.e. FY 2026-27 onward. CRITICAL: ITR filings for FY 2025-26 (AY 2026-27, current filing season) still use the 4-city list; current-year payroll/HRA declarations (FY 2026-27) use the expanded list. Tools MUST pick the list by the FY being computed and show this transition note. Exact amending notification number: pending CA insertion.
Three-Condition Comparison — Section 10(13A)
Exempt House Rent Allowance = minimum of these three amounts
| Condition | Rule | Monthly | Annual | |
|---|---|---|---|---|
| Cond. 1: Actual House Rent Allowance Received | Actual amount from employer | ₹20,000 | ₹2,40,000 | |
| ★Cond. 2: Rent − 10% of Basic | ₹18,000 − 10% of ₹50,000 | ₹13,000 | ₹1,56,000 | MINIMUM |
| Cond. 3: 50% of Basic (Delhi) | 50% for a configured metro city | ₹25,000 | ₹3,00,000 |
Result
HRA Received (Monthly)
₹20,000
HRA Received (Annual)
₹2,40,000
Exempt HRA (Monthly)
₹13,000
Exempt HRA (Annual)
₹1,56,000
Taxable HRA (Monthly)
₹7,000
Taxable HRA (Annual)
₹84,000
Partial Exemption — ₹84,000 /year is taxable
The balance HRA not covered by the minimum condition is added to taxable salary.
Landlord PAN required for this claim
Annual rent exceeds ₹1,00,000. CBDT Circular 8/2013 requires the landlord's PAN for the HRA claim.
Printable IF/THEN Decision Path
IF you receive HRA and pay rent, THEN calculate the three conditions above; IF the exemption is available under the old regime, THEN claim the minimum; IF monthly rent exceeds ₹50,000, THEN deduct 2% TDS under Section 194-IB; IF annual rent exceeds ₹1,00,000, THEN provide the landlord PAN under CBDT Circular 8/2013.
Regime Note: This exemption is only available under the Old Regime. Under the New Regime (Section 115BAC), HRA received is taxable. Use our Income Tax Calculator → to compare both regimes.
Disclaimer: This is an estimate for guidance only. Claims are subject to employer verification, rent receipts, and applicable conditions.
Statutory Basis
Section 10(13A) r/w Rule 2A
Section 10(13A) of the Income Tax Act, 1961 read with Rule 2A of the Income Tax Rules, 1962.
Three-Condition Minimum
The exempt House Rent Allowance is the minimum of three amounts: (1) Actual House Rent Allowance received; (2) Actual rent paid − 10% of basic salary; (3) 50% of basic salary for Delhi, Mumbai, Kolkata, Chennai; 40% of basic salary for other cities.
Taxable Portion
The balance (actual House Rent Allowance received − exempt House Rent Allowance) is included in taxable salary.
New Regime Restriction
House Rent Allowance exemption is not available under the new regime (Section 115BAC). Claim only under old regime.
PAN Requirement for Landlord
Rent receipts and landlord PAN are required for annual rent >₹1,00,000 as per CBDT Circular 8/2013.
Rent TDS
Monthly rent above ₹50,000 triggers tenant TDS of 2% under Section 194-IB. rate reduced from 5% to 2% w.e.f. Oct 2024
Want to optimise your House Rent Allowance claim and overall tax outgo?
Our CAs can review your salary structure, regime selection, and maximise legitimate exemptions under the old regime.
Embed This Tool
<iframe src="https://www.harunraaj.com/tools/hra-exemption-calculator" width="100%" height="600" frameborder="0" title="House Rent Allowance exemption calculator"></iframe>Frequently Asked Questions
How is HRA exemption calculated?+
1. HRA exemption is the lowest of actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary in a configured metro city or 40% in another city. Source: Section 10(13A) read with Rule 2A.
Which cities are configured as metro for HRA?+
2. Delhi, Mumbai, Kolkata, Chennai are the configured 50% cities in this tool. The tool keeps the CA-confirmed (Harun Raaj, 04-08-2026): metro list expanded effective 1 Apr 2026 — i.e. FY 2026-27 onward. CRITICAL: ITR filings for FY 2025-26 (AY 2026-27, current filing season) still use the 4-city list; current-year payroll/HRA declarations (FY 2026-27) use the expanded list. Tools MUST pick the list by the FY being computed and show this transition note. Exact amending notification number: pending CA insertion.
Is Bengaluru a metro for HRA?+
3. The tool does not silently classify Bengaluru as a metro: CA-confirmed (Harun Raaj, 04-08-2026): metro list expanded effective 1 Apr 2026 — i.e. FY 2026-27 onward. CRITICAL: ITR filings for FY 2025-26 (AY 2026-27, current filing season) still use the 4-city list; current-year payroll/HRA declarations (FY 2026-27) use the expanded list. Tools MUST pick the list by the FY being computed and show this transition note. Exact amending notification number: pending CA insertion.
Can I claim HRA under the new tax regime?+
4. No. HRA exemption under Section 10(13A) is unavailable under Section 115BAC; this calculator is for the old regime.
When is landlord PAN required?+
5. Landlord PAN is required when annual rent exceeds ₹1,00,000 under CBDT Circular 8/2013.
When does Section 194-IB apply to rent?+
6. When monthly rent exceeds ₹50,000, the tenant must deduct 2% TDS under Section 194-IB; rate reduced from 5% to 2% w.e.f. Oct 2024