Mastering HRA Exemption with our Professional Calculator
For salaried individuals in India, **House Rent Allowance (HRA)** is a significant tax-saving component. Understanding how to maximize this under **Section 10(13A)** can result in massive annual savings. Our **HRA Calculator India** is designed to give you the most accurate results based on current tax laws.
The Rule of Three: How HRA Exemption is Decided?
Income Tax authorities use a conservative approach. You are exempted for the *least* of the following three scenarios:
- Actual Receipt: The HRA amount your employer pays you.
- Rent Adjustment: Total rent paid minus 10% of your Basic Salary + Dearness Allowance (DA).
- City Limit: 50% of your salary (if you live in a Metro city) or 40% (if you live in a Non-metro city).
Metro vs Non-Metro
Only Delhi, Mumbai, Kolkata, and Chennai qualify as Metros for 50% HRA limit.
Tax Compliance
Our tool follows the latest Indian Income Tax Act regulations (FY 2025-26).
In-Hand Planning
See exactly how much taxable income you're reducing by living in a rented house.
Is HRA Exemption available in the New Tax Regime?
This is a common point of confusion. **IMPORTANT:** Under the **New Tax Regime**, most exemptions including HRA cannot be claimed. If you wish to claim this benefit, you must stay in the **Old Tax Regime**. Use our **Old vs New Tax Regime Calculator** to decide which path is better for you.