What is HRA Exemption Calculator? Section 10(13A) Guide 2026
HRA (House Rent Allowance) is allowance given by employer for rent. As per Section 10(13A) of Income Tax Act, HRA is partially tax-free if you live on rent. Our Rently HRA Exemption Calculator calculates exact tax-free HRA as per government 3 rules. It is 100% free, unlimited, no watermark, works worldwide for India. HRA exemption is only available in Old Tax Regime, not in New Regime 2026 where HRA is fully taxable.
Example: Basic Rs 6L yearly, HRA received Rs 3L yearly, Rent paid Rs 25k monthly = Rs 3L yearly, Metro city. Rule 1: Actual HRA = 3L. Rule 2: Rent -10% Basic = 3L -60k = 2.4L. Rule 3: 50% Basic = 3L. Minimum is 2.4L, so exemption = Rs 2.4L tax-free, remaining Rs 60k taxable. If tax slab 20%, tax saved = 2.4L*20% = Rs 48k yearly, Rs 4k monthly.
How HRA Calculator Works? 3 Rules Formula
As per Income Tax Act, HRA exemption is MINIMUM of these 3: 1) Actual HRA received from employer. 2) Rent paid minus 10% of (Basic+DA). Annual rent -10% basic. 3) 50% of Basic+DA if living in metro (Delhi, Mumbai, Kolkata, Chennai), 40% if non-metro. Our calculator calculates all 3 and shows minimum as exemption. Remaining HRA is taxable and added to income.
Rent Calculation: If monthly rent Rs 25k, annual rent = 3L. 10% basic = 60k (6L*10%). So rent -10% basic = 2.4L. If you increase rent to Rs 30k monthly (3.6L yearly), then rent -10% basic = 3L, then exemption becomes 3L full. So paying higher rent increases exemption till limit of HRA received or 50% basic whichever lower.
Why Rently HRA Calculator is Rank #1?
1. Govt Accurate: Uses exact 3-rule formula as per IT Act Section 10(13A) with metro/non-metro. 2. Tax Saving Shown: Shows how much tax you save monthly/yearly based on your slab. 3. Tips: Suggests how much rent to pay to get full exemption. 4. No Limits: Unlimited, no login, screenshot ready. 5. SEO Ready: Fast, mobile, FAQ schema, targets 100K searches/month for 'HRA calculator'.
Important: HRA exemption requires rent receipts and rent agreement if rent > Rs 1L yearly. If rent > Rs 50k per month, you need to deduct TDS 5% and give landlord PAN. If you pay rent to parents, it is allowed but must be genuine with agreement and transfer proof. If you own house in same city, HRA exemption may be disallowed.
How to Save Maximum Tax with HRA?
1. Live on rent even if you own house in different city - you can claim both HRA and home loan interest. 2. Pay rent via bank transfer, not cash, keep receipts. 3. If spouse is working, split rent to double exemption? No, only one can claim for same house. 4. For metro, try to get HRA = 50% basic from employer to maximize exemption. 5. If rent is low, increase HRA exemption by increasing rent on paper? No, fake rent is illegal, rent must be genuine. 6. Choose Old Regime if HRA exemption >1.5L, otherwise New Regime may be better.
Worldwide: In USA rent not tax-free, but mortgage interest deductible. In UK rent not exempt. In Dubai no tax. Our calculator is for India where HRA is unique tax benefit.
Frequently Asked Questions (FAQ)
HRA tax-free is minimum of 3: Actual HRA, Rent-10% Basic, 50% Basic metro / 40% non-metro. For 6L basic, 3L HRA, 25k rent metro, exemption = 2.4L.
No, HRA exemption is NOT available in New Regime 2026. It is only available in Old Regime with deductions. In new regime HRA fully taxable.
Yes, if you pay rent to parents with genuine rent agreement and bank transfer, you can claim HRA. Parents will show rental income and pay tax.
Metro for HRA = Delhi, Mumbai, Kolkata, Chennai only. 50% of basic exemption. All other cities are non-metro with 40% basic.
Yes, Rently HRA Exemption Calculator is 100% free, unlimited, no watermark, accurate as per IT Act 2026.