Tax Planning Engine · Sec 10(13A)
HRA Exemption Calculator
Instantly compute your House Rent Allowance tax-exempt and taxable portions based on salary, actual rent paid, and city classification.
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Statutory Rules
How HRA Exemption is Calculated
Under Section 10(13A) of the Income Tax Act, the tax-exempt amount is strictly the lowest of the following three parameters.
Actual HRA Received
The gross House Rent Allowance paid by your employer for the duration of the year.
Limit A = HRA Received
Rent Paid minus 10% of Basic Salary
Your actual rental payment minus 10% of (Basic Salary + Dearness Allowance).
Limit B = Rent Paid - 10% of (Basic + DA)
City-Based Basic Cap
50% of (Basic Salary + DA) for Metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for Non-Metros.
Limit C = 50% or 40% of (Basic + DA)
Compliance Advisory
Common HRA Claim Pitfalls
Landlord PAN Omission
If annual rent exceeds ₹1,00,000, quoting the landlord's PAN to your employer is legally mandatory under IT rules.
Incorrect Metro Status
Assuming tech hubs like Bengaluru, Hyderabad, or Pune qualify for 50%. Only Delhi, Mumbai, Kolkata, and Chennai qualify as Metros.
New Tax Regime Conflict
HRA exemption under Section 10(13A) is completely unavailable if you opt for the New Tax Regime under Section 115BAC.
Clubbing Maintenance
Including society maintenance charges or utility bills into the "Rent Paid" figure. Only pure house rent qualifies for calculation.
Frequently Asked
HRA Rules & Claims Explained
Can I pay rent to my parents and claim HRA?
Yes. You can pay rent to your parents provided they own the property and declare the rent as income in their personal Income Tax Returns (ITR).
Can I claim both HRA and Home Loan tax benefits?
Yes, if you own a house in one city (and claim Home Loan benefits) but reside in a rented house in another city due to employment, you can claim both concurrently.
What if I forgot to submit rent receipts to my employer?
You can still claim the HRA exemption directly while filing your annual Income Tax Return (ITR) and claim a tax refund for excess TDS deducted.
Can self-employed individuals claim HRA?
No, HRA exemption under Sec 10(13A) is for salaried individuals. Self-employed individuals can claim rent deduction under Section 80GG instead.
Tax & Payroll Advisory
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