Income Tax Act Section 10(13A) • Rule 2A

HRA Exemption Calculator

Calculate your exact tax-exempt House Rent Allowance (HRA) under Section 10(13A) Rule 2A. Compare Metro vs Non-Metro limits and calculate your income tax savings under the Old Tax Regime.

Rule 2A 3-Condition Check•Metro (50%) vs Non-Metro (40%)•Marginal Tax Savings Estimator•100% Free & Private

HRA Salary & Rent Inputs

Rule 2A Engine

Residential City Classification

Metro: Delhi, Mumbai, Kolkata, Chennai. All other cities are Non-Metro.

Annual Basic Salary (+ DA)

₹

₹1 Lakh₹50,000/mo₹30 Lakhs

Annual HRA Received from Employer

₹

₹10,000₹20,000/mo₹15 Lakhs

Actual Annual Rent Paid

₹

₹0₹25,000/mo rent₹15 Lakhs

Marginal Tax Bracket

Tax-Exempt HRA (Section 10(13A))

₹2,40,000/ year

₹20,000 / mo

Taxable HRA:

₹0

(₹0/mo)

Estimated Tax Saved:

₹74,880

(@ 30% + 4% cess)

Rule 2A Conditions (Lowest Amount is Exempt):

1. Actual HRA Received:₹2,40,000

2. 50% of Basic Salary:₹3,00,000

3. Rent Paid minus 10% Basic:₹2,40,000

Note: HRA exemption is exclusively available under the Old Tax Regime. Under Section 115BAC (New Tax Regime), HRA is fully taxable.

Understanding HRA Exemption under Section 10(13A)

Statutory breakdown of Rule 2A, metropolitan classifications, and rent receipt compliance.

The Statutory Rule 2A Formula

Under Rule 2A of the Income Tax Rules, tax-exempt HRA is strictly the lowest of the following 3 amounts:

1. Actual HRA received from employer

2. 50% of Basic Salary + DA (Metro) OR 40% (Non-Metro)

3. Actual Rent Paid minus 10% of Basic Salary + DA

Worked Example: Metro Resident

A salaried professional in Mumbai with ₹60,000/mo Basic, ₹25,000/mo HRA, and paying ₹30,000/mo rent:

Rule 1 (Actual HRA):₹3,00,000 / yr

Rule 2 (50% of ₹7.2L Basic):₹3,60,000 / yr

Rule 3 (Rent ₹3.6L - 10% Basic ₹72k):₹2,88,000 / yr

Statutory Tax-Exempt HRA:₹2,88,000 / yr (₹24,000/mo)

Metro Classification & Landlord PAN Requirements

For HRA tax purposes, only four cities qualify as Metro (50%): New Delhi, Mumbai, Kolkata, and Chennai. All other cities (including major hubs like Bengaluru, Hyderabad, Gurugram, and Pune) are categorized as Non-Metro (40%).

Landlord PAN Mandatory Threshold: If your annual rent paid to your landlord exceeds ₹1,00,000 (approx ₹8,333/month), you are legally required to report your landlord’s PAN on your tax return or Form 12BB to claim the HRA tax exemption.

HRA Exemption Guide: Rules, Metro Limits, Landlord PAN & Section 10(13A) Math

Understand HRA tax exemption under Section 10(13A) Rule 2A. Learn the 3-part calculation, 50% vs 40% metro limits, landlord PAN rules, and rent receipt compliance.

Read Guide

Frequently Asked Questions about HRA Exemption

Statutory compliance and tax deduction rules for House Rent Allowance.

How is HRA exemption calculated under Section 10(13A)?

Under Rule 2A, the exempt HRA is the least of: (1) Actual HRA received, (2) 50% of Basic+DA for Metro cities or 40% for Non-Metro cities, or (3) Rent paid minus 10% of Basic+DA.

Which cities count as Metro for the 50% HRA limit?

Only four metropolitan cities qualify under Indian tax law: Delhi, Mumbai, Kolkata, and Chennai. All other cities (including Bengaluru, Hyderabad, and Pune) are categorized as Non-Metro with a 40% cap.

Can I claim HRA if I live in my parents’ house?

Yes, provided your parents own the property, you physically transfer rent to their bank account, obtain proper rent receipts, and your parents declare that rental income on their Income Tax Returns.

Is HRA exemption allowed under the New Tax Regime (Section 115BAC)?

No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. The New Tax Regime offers lower tax slabs and a flat standard deduction instead of itemized exemptions.

Suite Directory

100% free, privacy-first calculators built for Indian taxpayers, salaried professionals, and investors.

Live Tool

Documents & Tax Proof