Work out how much of your house rent allowance is tax-exempt under Section 10(13A). Enter your basic salary, HRA, rent and city to see the exempt and taxable amounts instantly.
House rent allowance is partly exempt from income tax under Section 10(13A) of the Income Tax Act, if you live in rented accommodation. The exempt amount is the lowest of three figures, and whatever is left over is added to your taxable salary.
Only Delhi, Mumbai, Kolkata and Chennai count as metro for HRA. If you pay no rent, or your rent is below 10% of salary, the exemption is nil and the full HRA is taxable.
The exempt HRA is the lowest of three amounts: the actual HRA received, 50% of basic plus DA for metro cities (40% non-metro), and the rent paid minus 10% of basic plus DA. The balance is taxable.
Only Delhi, Mumbai, Kolkata and Chennai are metro for HRA, where the limit is 50% of basic plus DA. Every other city is non-metro at 40%.
No. The HRA exemption under Section 10(13A) is available only in the old tax regime.
If you pay no rent, the rent minus 10% of salary part is zero, so the exemption is nil and your entire HRA is taxable.
Only if HRA is part of their salary structure. Many blue-collar wage structures are basic plus DA with no HRA. For workers who do receive HRA, ZeniaHR computes the exempt portion automatically each month.
ZeniaHR computes HRA, PF, ESI, professional tax and bonus for thousands of workers across sites every month, and keeps each one on the correct minimum wage. Built only for manpower and staffing companies.
This calculator is a guide based on the standard Section 10(13A) HRA exemption rules and does not constitute tax advice. Your actual exemption depends on your salary structure, actual rent paid and tax regime; confirm with a tax professional.