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HRA Exemption Calculator

House Rent Allowance exemption under Section 10(13A).

The HRA Exemption Calculator computes the House Rent Allowance exemption, available only under the Old Regime, for FY 2025-26 (Section 10(13A) of the Income Tax Act, 1961) or Tax Year 2026-27 (Income Tax Act, 2025 and Rules, 2026). The exempt amount is the lowest of actual HRA received, 50% or 40% of salary, or rent paid minus 10% of salary. The 50% limit covers four cities up to FY 2025-26 and eight from Tax Year 2026-27.

Use the HRA Exemption Calculator

HRA Exemption Calculation

Exempt amount = lowest of the three below:

(a) Actual HRA received₹ 0
(b) 50% of salary₹ 0
(c) Rent - 10% of salary₹ 0
HRA Exempt₹ 0
HRA Taxable₹ 0
If annual rent exceeds ₹1,00,000, landlord's PAN is mandatory for claiming HRA. Maintain rent receipts as proof.

Generated on 16 October 2026 at skagandassociates.com — for information only, not professional advice

Income Tax Act 2025 transition: This tool covers both FY 2025-26 (AY 2026-27), under the Income Tax Act, 1961 (old section numbers such as 80C, 87A, 192), and Tax Year 2026-27, under the Income Tax Act, 2025 and Income Tax Rules, 2026 in force from 1 April 2026. Key changes: 80C→123, 87A→156, 192→392; Form 16→130; TDS uses payment codes 1001-1067. View full mapping →

Compute HRA exemption under Section 10(13A) of the Income Tax Act, 1961 (FY 2025-26) or Section 11 read with Schedule III (Sl. No. 11) of the Income Tax Act, 2025 and the Income Tax Rules, 2026 (Tax Year 2026-27) - Old Regime only. The exempt amount is the lowest of (a) actual HRA received, (b) 50% / 40% of salary, or (c) rent paid minus 10% of salary. Choose the year: the 50% cities differ.

Important conditions

  • HRA must be a component of your salary structure (mentioned in Form 16 / payslip).
  • You must be paying actual rent for residential accommodation (not your own house).
  • Rent paid to spouse is generally not allowed.
  • If staying with parents, you can pay them rent and claim HRA - but parents must declare it as rental income.
  • For monthly rent above ₹50,000, employee must deduct TDS @ 2% under Section 194-IB before paying landlord (Section 393(1) from TY 2026-27, deposited through Form 141).
  • HRA is NOT exempt under the New Tax Regime. Choose old regime if HRA is a significant component.

Income Tax Rules 2026 changes (from 1 Apr 2026)

  • 8 cities for 50% HRA exemption: Bengaluru, Hyderabad, Pune and Ahmedabad added to the existing Delhi, Mumbai, Kolkata, Chennai list (Rules 2026), for salary of Tax Year 2026-27 onwards. For FY 2025-26 (the return filed in 2026), these four cities remain at 40%.
  • Form 124 replaces Form 12BB: Employees must furnish investment declaration including HRA evidence on the new Form 124 from 1 April 2026.
  • Relationship with landlord mandatory: From 1 April 2026, you must disclose your relationship (if any) with the landlord on Form 124 to prevent abuse of the parents-as-landlord arrangement.
  • Children Education / Hostel Allowance: Increased to ₹3,000 / ₹9,000 per month per child (max 2 children) under Rules 2026.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Frequently Asked Questions

How is HRA exemption calculated?
HRA exemption under Section 10(13A) is the lowest of three amounts: the actual HRA received, 50% of basic salary plus DA for metro cities or 40% for other cities, and rent paid minus 10% of basic salary plus DA. Any HRA above the exempt amount is taxable. The tool computes all three amounts and shows the lowest as exempt.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption is available only under the old tax regime; it is not exempt under the new regime. If HRA is a large part of your salary, compare the tax under both regimes before choosing. To claim it, HRA must be part of your salary and you must actually pay rent for residential accommodation that you do not own.
Which cities count as metro for 50% HRA exemption?
Up to FY 2025-26 (AY 2026-27), the 50% limit applies to Delhi, Mumbai, Kolkata and Chennai. From Tax Year 2026-27 (1 April 2026), the Income Tax Rules, 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad, making eight cities; the calculator applies the list for the year you select. All other cities use the 40% limit. If annual rent exceeds Rs 1 lakh, the landlord's PAN is required.

Due in the next 30 days

Income tax
  1. ITR Filing (taxpayers under audit, companies)In 14 days · Income tax
  2. TCS statement for Jul–Sep 2026 quarter (Form 143)In 14 days · Income tax
  3. TDS statements for Jul–Sep 2026 quarter (Forms 138 / 140 / 144)In 14 days · Income tax
  4. TDS / TCS deposit (e-Pay Tax, Challan ITNS 281) for OctoberIn 21 days · Income tax

Full compliance calendar → Statutory dates, which can be extended by notification. General information only.

Published by SKAG and Associates, Chartered Accountants, New Delhi · Proprietor CA Gaurav Singh (ICAI M.No. 539050). General information only, not professional advice.

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