FinanceAdhikar Logo
FinanceAdhikar
Tax & GST Calculators

House Rent Allowance (HRA) Exemption Calculator – Rule 2A 3-Way Exemption Formula

Calculate House Rent Allowance (HRA) tax exemption under Section 10(13A) Rule 2A (50% Metro vs 40% Non-Metro), taxable HRA, and Landlord PAN requirements.

Quick City Presets Section 10(13A) Rule 2A
Total Annual Tax-Exempt HRA
₹1,68,000 / yr
₹14,000 / Month 100% Tax-Free
Total Annual HRA Received ₹3,00,000
Taxable HRA Added to Salary ₹1,32,000
Landlord PAN Required: Yes (Rent > ₹1L/yr)

How to Use this Calculator & Formula Breakdown

1

Step 1: Input Financial Parameters

Select Metro (50%) or Non-Metro city (40%).

2

Step 2: Instant Client-Side Computation

Enter monthly Basic + DA, HRA received, and actual rent paid.

3

Step 3: Analyze Visual Breakdown & Amortization

Explore live interactive exemption summary, taxable HRA breakdown, and landlord PAN requirement status.

Mathematical Algorithm & Formula

HRA Exemption: Minimum of [Actual HRA], [50%/40% of Basic], or [Rent Paid - 10% of Basic] (Sec 10(13A) Rule 2A).

Frequently Asked Questions (FAQs)

How is House Rent Allowance (HRA) exemption calculated under Section 10(13A)?

HRA exemption is the MINIMUM of the following 3 amounts: (1) Actual HRA received from employer. (2) 50% of Basic Salary + DA for Metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for Non-Metro cities. (3) Actual Rent Paid minus 10% of Basic Salary + DA.

Is HRA exemption available in the New Tax Regime?

No. HRA tax exemption under Section 10(13A) is only available under the Old Tax Regime. The New Tax Regime does not allow HRA deductions.

When is Landlord PAN mandatory for claiming HRA?

If your total annual rent payment exceeds ₹1,00,000 (i.e. more than ₹8,333 per month), it is mandatory under Income Tax rules to submit your landlord’s PAN card to your employer.

Can you pay rent to parents and claim HRA?

Yes! You can legally pay rent to your parents (provided they own the property) via bank transfer and claim HRA exemption. Your parents must declare this rental income in their tax returns.