About HRA Calculator
House Rent Allowance (HRA) exemption under Section 10(13A) is available only under the Old Tax Regime. The exempt HRA is the minimum of three conditions: (1) Actual HRA received from employer, (2) Rent paid minus 10% of Basic+DA, (3) 50% of Basic+DA for metro cities or 40% for non-metro cities.
Metro cities for HRA purposes are Delhi, Mumbai, Chennai and Kolkata. All other cities including Hyderabad, Bangalore, Pune, Ahmedabad are treated as non-metro (40% limit). If you pay rent to a family member and the annual rent exceeds โน1 lakh, the landlord's PAN is mandatory.
HRA exemption is NOT available under the New Tax Regime (FY 2024-25 onwards as default). Use the Old Regime and claim HRA along with 80C, 80D and other deductions to maximise savings.
Frequently Asked Questions
What are the three conditions for HRA exemption?+
HRA exempt = Minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of Basic+DA, (3) 50% of Basic+DA for metro or 40% for non-metro. The lowest of the three is the exempt amount.
Is Bangalore, Hyderabad or Pune considered metro for HRA?+
No. Only Delhi, Mumbai, Chennai and Kolkata are metro cities for HRA purposes. Bangalore, Hyderabad, Pune, Ahmedabad get the 40% non-metro limit under Income Tax rules.
Can I claim HRA if I live in my own house?+
No. HRA exemption requires you to actually pay rent for accommodation. If you live in your own house or company-provided accommodation with no rent payment, HRA is fully taxable.
Can I claim HRA and home loan deduction together?+
Yes, in certain cases โ if you live in a rented house in city A and own a house in city B (where you work or for some other reason cannot occupy), you can claim both HRA exemption and home loan deductions under Section 24.
Is HRA available under the New Tax Regime?+
No. HRA exemption under Section 10(13A) is available only under the Old Tax Regime. Under the New Regime, all exemptions and deductions (except standard deduction) are disallowed.