HRA Exemption — How to Calculate House Rent Allowance Tax Benefit
Updated: 3 June 2026 | Section 10(13A), Income Tax Act | Old Regime Only
HRA exemption = Minimum of three amounts:
(1) Actual HRA received from employer
(2) Rent paid minus 10% of basic salary + DA
(3) 50% of basic+DA (metro cities: Delhi/Mumbai/Chennai/Kolkata) or 40% (non-metro)
The lowest of the three is exempt from tax. The remaining HRA is taxable. Available only in the old tax regime — not applicable under the new regime. Claim via Form 12BB submitted to employer, or directly in ITR.
(1) Actual HRA received from employer
(2) Rent paid minus 10% of basic salary + DA
(3) 50% of basic+DA (metro cities: Delhi/Mumbai/Chennai/Kolkata) or 40% (non-metro)
The lowest of the three is exempt from tax. The remaining HRA is taxable. Available only in the old tax regime — not applicable under the new regime. Claim via Form 12BB submitted to employer, or directly in ITR.
MIN(3)
HRA exemption = Minimum of 3 conditions
Calculate all three, take the smallest. That is your tax-free HRA. The rest is added to taxable salary.
Calculate all three, take the smallest. That is your tax-free HRA. The rest is added to taxable salary.
Metro vs Non-Metro HRA Percentage
| City Type | Cities | HRA % of Basic+DA |
|---|---|---|
| Metro | Delhi, Mumbai, Chennai, Kolkata | 50% |
| Non-Metro | All other cities (Bengaluru, Hyderabad, Pune, Ahmedabad, etc.) | 40% |
HRA Exemption Calculator
Calculate Your HRA Exemption (Monthly)
Actual HRA received (monthly)—
Rent paid − 10% of Basic+DA—
50%/40% of Basic+DA—
Exempt HRA (monthly)—
Taxable HRA (monthly)—
Exempt HRA (annual)—
Example HRA Calculation — ₹10L and ₹15L CTC
| Parameter | ₹10L CTC (Non-Metro) | ₹15L CTC (Metro) |
|---|---|---|
| Basic Salary (monthly) | ₹35,000 | ₹55,000 |
| HRA Received (monthly) | ₹14,000 | ₹22,000 |
| Rent Paid (monthly) | ₹12,000 | ₹25,000 |
| Condition 1 — Actual HRA | ₹14,000 | ₹22,000 |
| Condition 2 — Rent − 10% Basic | ₹12,000 − ₹3,500 = ₹8,500 | ₹25,000 − ₹5,500 = ₹19,500 |
| Condition 3 — % of Basic | 40% × ₹35,000 = ₹14,000 | 50% × ₹55,000 = ₹27,500 |
| Exempt HRA (monthly) | ₹8,500 (min) | ₹19,500 (min) |
| Taxable HRA (monthly) | ₹5,500 | ₹2,500 |
| Exempt HRA (annual) | ₹1,02,000 | ₹2,34,000 |
Frequently Asked Questions
How is HRA exemption calculated?
HRA exemption is the minimum of three amounts: (1) Actual HRA received from employer; (2) Rent paid minus 10% of basic salary + DA; (3) 50% of basic+DA if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities. Whichever of these three is lowest becomes your exempt HRA. The remaining HRA (above the exempt portion) is added to taxable income. This calculation is done on a monthly basis and then totalled annually.
Which cities are considered metro for HRA exemption?
Only four cities are classified as metro for HRA purposes under Section 10(13A) of the Income Tax Act: Delhi, Mumbai (including Thane and Navi Mumbai), Chennai, and Kolkata. For employees in these four cities, 50% of basic+DA is used in the HRA calculation. All other cities — Bengaluru, Hyderabad, Pune, Ahmedabad, etc. — are non-metro, and the applicable percentage is 40% of basic+DA. Note: Bengaluru, despite being a major IT hub, is non-metro for HRA purposes.
Can I claim HRA exemption without rent receipts?
If your annual rent is up to ₹1 lakh (₹8,333/month), you can claim HRA without rent receipts — but your employer may ask for a declaration. If annual rent exceeds ₹1 lakh, you must provide the landlord's PAN to your employer; rent receipts are also required. To claim HRA in your ITR, you don't need to attach receipts but should maintain them as evidence in case of scrutiny. If your landlord is a family member (spouse, parents), receipts and genuine payment records are especially important.
Can I claim HRA if I stay in my own house?
No. HRA exemption requires you to actually pay rent for accommodation. If you live in your own house (self-occupied property), you cannot claim HRA exemption even if your salary structure includes an HRA component. In that case, the entire HRA received is taxable. However, if you live in a rented house in one city while your own house is in another city, you can still claim HRA. You may also simultaneously claim home loan deductions under Section 24(b) for the self-occupied property in the other city.
Is HRA exemption available in new tax regime?
No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime. Under the new regime, the entire HRA component received from your employer is taxable as part of your salary. The new regime offers lower slab rates in exchange for foregoing most deductions and exemptions including HRA, 80C, 80D, and others. If your HRA exemption is significant (e.g., high rent in a metro city), the old regime may save more tax. Use a tax calculator to compare both regimes.
Related Pages
◆ Available in 71 Cities
Hra Exemption Near You
Expert CA/CS assistance for hra exemption across India. Click your city for local details.
→
New Delhi
→
Mumbai
→
Bengaluru (Bangalore)
→
Hyderabad
→
Chennai
→
Kolkata
→
Pune
→
Ahmedabad
→
Noida (UP)
→
Gurgaon (Gurugram)
→
Jaipur
→
Lucknow
→
Chandigarh
→
Surat
→
Kochi (Cochin)
→
Faridabad
→
Ghaziabad
→
Greater Noida
→
Panipat
→
Sonipat
→
Manesar (IMT)
→
Dharuhera
→
Mathura
→
Palwal
→
Agra
→
Kosi Kalan
→
Aligarh
→
Khair
→
Jewar (Noida International Airport)
→
Kanpur
→
Varanasi (Kashi)
→
Prayagraj (Allahabad)
→
Meerut
→
Bareilly
→
Moradabad
→
Gorakhpur
→
Firozabad
→
Saharanpur
→
Muzaffarnagar
→
Bulandshahr
→
Hapur
→
Karnal
→
Kurukshetra
→
Ambala
→
Hisar
→
Rohtak
→
Yamunanagar
→
Rewari
→
Bhiwani
→
Jodhpur
→
Udaipur
→
Kota
→
Ajmer
→
Bikaner
→
Ludhiana
→
Amritsar
→
Jalandhar
→
Patiala
→
Mohali (SAS Nagar)
→
Bathinda
→
Dehradun
→
Haridwar
→
Rudrapur
→
Shimla
→
Solan (Baddi-Barotiwala-Nalagarh)
→
Bhopal
→
Indore
→
Gwalior
→
Jammu
→
Srinagar
→
Panchkula