WorkLegal.in ← Back to Toolkit
Sponsored Resource

HRA Tax Exemption Calculator

Compute exempt House Rent Allowance under Section 10(13A) (Old Tax Regime).

₹
Total annual basic pay received from your employer.
₹
₹
Section 10(13A) Exemption
Rule 2A
Annual Tax-Exempt HRA Amount
₹1,80,000
1. Actual HRA Received ₹3,00,000
2. City Allowance Limit (50% / 40% Basic) ₹3,00,000 (50% of Basic)
3. Rent Paid − 10% Basic Pay ₹1,80,000 (Lowest of 3 Limbs)
Taxable HRA Portion ₹1,20,000 / Year
Monthly Tax Savings Estimate ₹4,680 / Month (30% slab)

How HRA Tax Exemption is Calculated in India

Under Section 10(13A) and Rule 2A of the Income Tax Act 1961, the tax-exempt portion of House Rent Allowance is strictly the minimum of the following three statutory amounts:

1. Actual HRA received from your employer
2. 50% of Basic Salary (for Delhi, Mumbai, Kolkata, Chennai) OR 40% (for all other cities)
3. Actual Rent Paid minus 10% of Basic Salary

Landlord PAN Requirement

If your total annual rent paid exceeds ₹1,00,000 per year (more than ₹8,333 per month), it is mandatory under Income Tax Department rules to report your landlord's Permanent Account Number (PAN) on your investment declaration / Form 12BB.

New Tax Regime Note

HRA tax exemption under Section 10(13A) is only available if you opt for the Old Tax Regime. Under the default New Tax Regime (Section 115BAC), HRA exemption is not available, but employees receive higher baseline tax rebates and standard deductions.