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Finance & InvestmentEntry № 01.35Documented Formula

House Rent Allowance (HRA) Exemption Calculator (India)

Determines tax-exempt House Rent Allowance under Section 10(13A) of the Income Tax Act for Old Tax Regime taxpayers in metro and non-metro cities.

Popular Searches:How is HRA exemption calculated in Delhi/Mumbai?HRA exemption formula: rent paid minus 10% basicCan I claim HRA in New Tax Regime? (No)
Section 10(13A) HRA Exemption Calculator (India)
Old Tax Regime Exemption
Total Tax-Exempt HRA
₹1,56,000

Taxable HRA Portioned to Salary: ₹84,000

1. Actual HRA:₹2,40,000
2. Rent Paid − 10% Basic:₹1,56,000
3. 50% of Basic:₹3,00,000
Mathematical Proof & FormulaStandard Mathematical Notation

How This Calculation Formula is Formulated

Computes the legal tax exemption on House Rent Allowance under Section 10(13A) and Rule 2A of the Income Tax Act for salaried employees under the Old Tax Regime.

Standard Algebraic Representation
Exempt HRA = min(Actual HRA, Rent Paid − 10%·Basic, 50%·Basic [Metro] / 40%·Basic [Non-Metro])
Documented algebraic formula with transparent derivation and reference notes.

Variable Definitions & Measurement Units

Basic
Basic Salary + DA
Annual basic pay determining the percentage caps.
HRA
Actual HRA Received
Component received from employer.
Rent
Rent Paid
Actual residential rent paid during the year.
Step-by-Step Calculation Example

Metro City HRA Exemption on ₹6 Lakh Basic

A Mumbai employee with ₹6,00,000 annual basic salary receives ₹2,40,000 HRA and pays ₹2,16,000 rent (₹18,000/month).

1
Condition 1: Actual HRA
₹2,40,000
Employer allowance
2
Condition 2: Rent Paid − 10% Basic
₹2,16,000 − (0.10 × ₹6,00,000) = ₹1,56,000
Rent excess
3
Condition 3: 50% Basic (Metro)
0.50 × ₹6,00,000 = ₹3,00,000
Metro statutory ceiling
4
Minimum of Three
min(₹2.40L, ₹1.56L, ₹3.00L) = ₹1,56,000
Tax-exempt HRA
Conclusion: The employee claims ₹1,56,000 as tax-exempt HRA under Section 10(13A). The remaining ₹84,000 is added to taxable salary.
In-Depth Editorial Analysis

HRA in New Tax Regime vs Old Tax Regime

Under the New Tax Regime (Section 115BAC), all deductions including Section 10(13A) HRA exemptions, Section 80C, and Section 80D are completely disallowed.

Salaried tenants paying significant urban rent often find the Old Tax Regime delivers lower net tax liability once HRA exemptions, standard deduction, and 80C deductions are claimed together.

Frequently Asked Questions

Frequently Asked Questions About House Rent Allowance (HRA) Exemption Calculator (India)

Which cities qualify as Metro for 50% HRA?

Only four cities qualify for the 50% metro rule under Rule 2A: Delhi, Mumbai, Kolkata, and Chennai. Bengaluru, Hyderabad, and Pune are classified as non-metro (40%).

Is landlord PAN mandatory for claiming HRA?

Yes. If annual rent paid exceeds ₹1,00,000 (approx. ₹8,333/month), the landlord's PAN must be provided to the employer.

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Deterministic Precision & 100% Client-Side Privacy

All calculations execute in your local browser using IEEE 754 double-precision floating-point arithmetic. Your figures and financial metrics remain private and are never uploaded or saved to any cloud servers.