Income Tax & Payroll Calculator
HRA Exemption Calculator
Compute your House Rent Allowance (HRA) tax exemption under Section 10(13A) of the Income-tax Act, verify the 3 statutory limits, and review Landlord PAN and Section 194-IB TDS rules.
Basic pay for the relevant period
Actual HRA allowance in salary slip
Actual rent paid for residential accommodation
Additional Salary Components (DA & Turnover Commission)
Only DA forming part of retirement benefits
Commission earned as fixed % of turnover
HRA Exemption Summary
Statutory Limits Comparison (Least is Exempt)
Formula and assumptions
- Salary for Section 10(13A) is Basic Salary + Dearness Allowance (DA to the extent forming part of retirement benefits) + Commission (based on fixed % of turnover).
- Exemption is the least of: (1) Actual HRA received, (2) Rent paid exceeding 10% of Salary, and (3) 50% of Salary for Metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for Non-Metro locations.
- HRA exemption is exclusively available under the Old Tax Regime. Under Section 115BAC (New Tax Regime), HRA is fully taxable.
- Landlord PAN is mandatory if annual rent exceeds ₹1,00,000 (CBDT Circular 08/2013 / Section 206AA).
- Section 194-IB requires 2% TDS on monthly rent exceeding ₹50,000 (rate reduced from 5% w.e.f. October 1, 2024).
- Half-up to 2 decimal places (banker's / monetary rounding).
Formula version Income-tax Act, 1961 Section 10(13A) read with Rule 2A (Budget 2024 / Finance (No. 2) Act 2024), last reviewed 2024-10-01.
Frequently asked questions
Can I claim HRA exemption under the New Tax Regime (Section 115BAC)?
No. Under the default New Tax Regime (Section 115BAC), House Rent Allowance (HRA) is fully taxable without any exemption under Section 10(13A). You can only claim HRA tax exemption if you choose the Old Tax Regime when filing your Income Tax Return (ITR).
When is the Landlord's PAN mandatory to claim HRA?
Under CBDT Circular No. 08/2013 and Section 206AA, if the total annual rent paid to your landlord exceeds ₹1,00,000 (which is approximately ₹8,333 per month), quoting your landlord's PAN is mandatory for your employer to allow the exemption. If the landlord does not have a PAN, a signed declaration in Form 60 along with their full name and address must be provided.
Can I pay rent to my parents and claim HRA?
Yes, you can legally claim HRA by paying rent to your parents, provided you do not co-own the property, a genuine registered/notarised rent agreement exists, rent is paid regularly through banking channels (NEFT/UPI/Cheque), and your parents declare this rental income under 'Income from House Property' in their own Income Tax Returns.
Do I need to deduct TDS on rent paid to my landlord?
Under Section 194-IB of the Income-tax Act, if you are an individual or HUF paying monthly rent exceeding ₹50,000, you are legally required to deduct TDS from the rent. Following Budget 2024 (Finance (No. 2) Act, 2024), the TDS rate under Section 194-IB has been reduced from 5% to 2% effective 1 October 2024. The tenant does not need a TAN and can deposit TDS using Form 26QC with their PAN.
What if I changed jobs, cities, or had a salary increment mid-year?
Rule 2A mandates that whenever there is a change in salary, rent paid, city of accommodation (metro vs. non-metro), or employer during the financial year, HRA exemption must be calculated separately for each specific period and then summed up. Use our Multi-Period mode to compute your exact deduction across varying tenures.
Can I claim both HRA and Home Loan Tax Deductions (Section 24b & 80C)?
Yes. If you own a house in a different city or live in a rented home because your owned house is far from your workplace (or rented out to someone else), you can claim both HRA under Section 10(13A) and home loan interest deduction under Section 24(b) (up to ₹2,00,000) plus principal repayment under Section 80C.