Section 10(13A) FY 202526 Metro vs Non-Metro

HRA Exemption
Calculator

Calculate your exact HRA exemption under Section 10(13A). Compares all 3 conditions actual HRA received, rent paid minus 10% salary, and 50%/40% of basic and picks the lowest for maximum tax savings.

3
Conditions Auto-Compared
50%
Metro City Rate
Free
No Login
HRA Exemption Calculator
Enter your salary components and rent details. We auto-apply the correct metro/non-metro rate and find your maximum exemption.
City Type
Metro City
50%
Mumbai Delhi Kolkata Chennai
Non-Metro
40%
Bangalore Hyderabad Pune Others
Mumbai Delhi Kolkata Chennai
Note: Only Mumbai, Delhi (NCR), Kolkata and Chennai qualify as metro cities for HRA (50% of basic). All other cities including Bangalore, Hyderabad, Pune get 40% even if they are major metros.
Monthly Basic Salary () 50,000
5K5 Lakh
Monthly DA Dearness Allowance () 0
HRA formula uses Basic + DA. Most private sector employees have DA = 0.
Monthly HRA Received from Employer () 20,000
02 Lakh
Monthly Rent Paid () 18,000
02 Lakh
Months of Rent Paid in FY 12 months
1 month12 months
Landlord Details (for PDF)
Landlord Name
Landlord PAN (if rent >1L/yr)
Employee Name
ANNUAL HRA EXEMPTION
1,56,000
Metro City Maximum Exemption
Annual HRA Received2,40,000
Annual Rent Paid2,16,000
HRA Exemption (Annual)1,56,000
Taxable HRA (Annual)
Monthly Exemption 13,000
Tax Saved (30% slab) 48,672
3-CONDITION COMPARISON (LOWEST = EXEMPTION)
Actual HRA Received 2,40,000
Rent Paid 10% of Basic+DA 1,56,000
50%/40% of Basic+DA 3,00,000
Condition gives lowest 1,56,000 exempted
Exempt HRA
Taxable HRA
Rent Paid
How HRA Exemption is Calculated Step by Step
Under Section 10(13A) of the Income Tax Act, HRA exemption = Lowest of these 3 conditions. Only the minimum qualifies as exempt the rest is taxable.
Formula 3 Conditions (Lowest is Exempt)
Pro Tip: To maximize HRA exemption, negotiate a higher HRA component in your CTC. Ideally HRA should be 4050% of Basic salary. Also, always keep rent receipts and get landlord's PAN if annual rent exceeds 1 Lakh.
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