1. What is HRA Exemption Under Section 10(13A)?

The House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act allows salaried individuals to claim tax exemption on the HRA component of their salary if they live in rented accommodation. The exemption is calculated as the least of three specified amounts.

2. How Does the Calculator Work?

The calculator uses the HRA exemption formula:

Where:

• Rent Paid — Actual rent paid minus 10% of basic salary
• 50%/40% of Salary — 50% for metro cities, 40% for non-metro cities
• HRA Received — Actual HRA received from employer

Explanation: The exemption is calculated as the minimum of these three values to ensure fair tax benefits.

3. Importance of HRA Exemption Calculation

Details: Proper calculation of HRA exemption can significantly reduce taxable income and tax liability for salaried individuals living in rented accommodation.

4. Using the Calculator

Tips: Enter actual rent paid, basic salary plus DA, HRA received, and select whether you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or non-metro city.

5. Frequently Asked Questions (FAQ)

Q1: Which cities are considered metro for HRA calculation?
A: The four metro cities are Delhi, Mumbai, Chennai, and Kolkata. All other cities are considered non-metro.

Q2: Can I claim HRA if I live in my own house?
A: No, HRA exemption is only available if you're paying rent for accommodation.

Q3: What if my actual rent is less than 10% of salary?
A: In that case, the first component becomes negative, so the exemption would be the minimum of the other two components.

Q4: Are there any documents required to claim HRA?
A: You may need to submit rent receipts and potentially a rent agreement to your employer for amounts above ₹1 lakh per year.

Q5: Can I claim HRA if I'm paying rent to my parents?
A: Yes, but your parents must show this rental income in their tax return, and you must have proper rent receipts and ideally a rental agreement.