HRA Calculator: House Rent Allowance Tax Exemption (Rule 2A)
Compute your tax-free House Rent Allowance under Section 10(13A) of the Income Tax Act. Evaluates actual HRA, 50%/40% basic salary caps, and rent paid minus 10% of salary.
Adjust Parameters
Calculation is an estimate based on user-entered assumptions. Under Rule 2A, eligible salary is strictly defined as Basic Salary plus Dearness Allowance (if forming part of retirement benefits). Special and other allowances are excluded.
Basic salary component only (do not include special allowances or bonus).
Total HRA amount received across all 12 months.
Cumulative rent paid with rent receipts / lease agreement.
Metros per Income Tax Act: Mumbai, Delhi, Kolkata, Chennai. All other cities qualify for 40%.
100% deduction from taxable salary
Based on 30% slab + 4% cess
Added to gross salary for tax
₹3,120/mo tax saved
HRA Tax Exemption Breakdown
Total: ₹2,40,000| Category | Amount | Percentage |
|---|---|---|
| Tax-Exempt HRA | ₹1,20,000 | 50.0% |
| Taxable HRA Portion | ₹1,20,000 | 50.0% |
Rule 2A Statutory 3-Condition Comparison
Under Section 10(13A), your tax-exempt HRA is the MINIMUM of the following 3 amounts:
| Statutory Condition | Legal Basis | Computed Amount | Status |
|---|---|---|---|
| 1. Actual HRA Received | Employer HRA component | ₹2,40,000 | — |
| 2. 50% of Basic Salary | Metro limit | ₹3,00,000 | — |
| 3. Rent Paid minus 10% of Basic | ₹1,80,000 - ₹60,000 | ₹1,20,000 | Exempt Amount (Lowest) |
How House Rent Allowance (HRA) Exemption is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Conventions & Assumptions
- HRA exemption is ONLY available under the Old Tax Regime. The default New Tax Regime (Section 115BAC) does not allow HRA exemption.
- If annual rent paid exceeds ₹1,00,000, quoting the landlord's Permanent Account Number (PAN) is mandatory on Form 12BB.
- Paying rent to parents is legally permissible provided the parents own the property and declare the rental income in their tax returns.
- Both HRA and Home Loan Tax Benefits (Section 24(b) and 80C) can be claimed simultaneously if you work in one city while owning a home in another.
Frequently Asked Questions
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