Enter your basic salary, HRA received and rent paid to get your HRA exemption under Section 10(13A) — FY 2025-26 rules, old regime only.
What Is HRA Exemption Calculator India
An HRA exemption calculator applies Section 10(13A): the exempt amount is the LEAST of (a) HRA received, (b) rent − 10% of basic, (c) 50% of basic (metro) or 40% (non-metro). Example: basic ₹50,000, HRA ₹20,000, rent ₹25,000, metro → min(20,000, 20,000, 25,000) = ₹20,000/month = ₹240,000/year. HRA exemption exists ONLY in the old regime — the new regime gives no HRA deduction (a common costly mistake).
How to Use
- Enter monthly basic + DA.
- Enter monthly HRA received.
- Enter monthly rent paid.
- Pick metro or non-metro.
- Click “Calculate Exemption”.
Formula
Exempt = min(HRA received, rent − 10% basic, 50%/40% × basic). Yearly = monthly × 12.
Worked Example
Basic ₹50,000, HRA ₹20,000, rent ₹25,000, metro: min(20,000, 20,000, 25,000) = ₹20,000/month = ₹240,000.00/year.
How It Works, In Plain Words
The tool works through the three legs of Section 10(13A) one at a time, using your monthly figures. Leg (a) is simply the HRA you actually receive — the exemption can never exceed it. Leg (b) is your rent minus 10% of your basic salary plus DA: in the worked example, ₹25,000 rent minus 10% of ₹50,000, which is ₹5,000, leaves ₹20,000. Leg (c) is the city cap: 50% of basic for a metro city, 40% elsewhere — here 50% of ₹50,000 is ₹25,000. The exempt amount is whichever leg is smallest, so the example lands on ₹20,000 a month.
Two details in the inputs matter more than they look. The salary figure is basic plus DA, because the 10% and 50%/40% legs are calculated on that combined figure — leaving DA out understates two of the three legs. And everything is monthly: the tool multiplies the monthly exemption by 12 for the yearly figure, ₹240,000 in the example. Finally, the page’s framing applies throughout: these are the FY 2025-26 rules and the exemption exists only in the old regime, so the result is the figure to compare when you weigh the two regimes.
Real-World Uses
An employee in Delhi checks the figure before filing under the old regime: basic plus DA of ₹50,000, HRA of ₹20,000 and rent of ₹25,000 produce the worked example’s ₹20,000 a month — ₹240,000 across the year — and the receipts file is kept ready, landlord PAN included, because the rent crosses ₹1 lakh a year. A colleague in a non-metro city runs the same salary with the city switched, so leg (c) uses the 40% rate the FAQs describe instead of 50%. Someone comparing regimes uses the yearly exemption as the old regime’s headline benefit, setting it against the new regime — where, as this page stresses, no HRA exemption exists at all. Each run takes seconds, so the figure can be rechecked whenever salary, HRA or rent changes during the year.
Benefits
- The three-way minimum explained
- Metro/non-metro handled
- The old-regime-only warning prominent
- FY 2025-26 rules with “last verified” date
Features of Our Tool
- Instant results in your browser
- No sign-up, no download, 100% free
- Works on mobile, tablet and desktop
- Clear step-by-step explanation below the tool
- Private — your entries never leave your device
Common Mistakes
- Claiming HRA in the new regime — not allowed
- Forgetting rent receipts/landlord PAN (₹1L+/year needs PAN)
- Using basic without DA in the 10%/50% legs
Common Mistakes to Avoid
The costliest error is the one this page flags twice: claiming HRA in the new regime, where no exemption exists — the whole calculation only applies under the old regime. Next, paperwork: forgetting rent receipts, or the landlord’s PAN when rent exceeds ₹1 lakh a year, can undo a correct calculation at filing time. The third is the salary figure itself — using basic without DA in the 10% and 50%/40% legs, exactly as the list above warns, shrinks two legs and understates the exemption. And a quieter one: running the numbers with the wrong city setting, since the metro choice changes leg (c) between 50% and 40% of basic.
FAQ
What is the HRA exemption formula?
Least of HRA received, rent minus 10% of basic, and 50%/40% of basic.
Worked example?
₹50k basic, ₹20k HRA, ₹25k rent, metro → ₹240,000/year.
Is HRA exempt in the new regime?
No — the new regime gives no HRA exemption.
Which cities are metro?
Delhi, Mumbai, Chennai, Kolkata (50%); all others 40%.
Do I need rent receipts?
Yes — and landlord PAN if rent exceeds ₹1 lakh/year. Rates last verified: October 2026.
Why does the tool ask for monthly figures?
Because the three legs are compared month by month — HRA received, rent minus 10% of basic, and 50% or 40% of basic — and the tool then multiplies the monthly exemption by 12 for the yearly figure, as in the worked example’s ₹240,000.
What if my rent is lower than 10% of my basic salary?
Leg (b) — rent minus 10% of basic — would come out negative, so the tool treats it as zero and the exemption falls to the smallest of the three legs. In the worked example the legs are ₹20,000, ₹20,000 and ₹25,000, so ₹20,000 is exempt.