What is the official formula for HRA tax exemption under Section 10(13A)?

The tax-exempt HRA is the MINIMUM of three amounts: 1. Actual HRA received from employer, 2. Actual rent paid minus 10% of (Basic Salary + DA), 3. 50% of (Basic Salary + DA) for Metro cities OR 40% for Non-Metro cities.

Which Indian cities qualify for the 50% Metro HRA limit?

According to Income Tax rules, strictly four cities qualify for the 50% Metro HRA limit: Mumbai, Delhi (NCR), Kolkata, and Chennai. Tech hubs like Bengaluru, Hyderabad, and Pune are classified under the 40% Non-Metro limit.

Is landlord PAN mandatory for claiming HRA tax exemption?

Yes! If your total annual rent paid to a landlord exceeds ₹1,00,000 per financial year (~₹8,333/month), it is mandatory to provide the landlord's PAN to your employer.

HRA Calculator 2025 | House Rent Allowance Tax Exemption u/s 10(13A)

HRA Calculator 2025 (House Rent Allowance Exemption u/s 10(13A))

Calculate your tax-exempt House Rent Allowance (HRA) and net taxable HRA under the Old Tax Regime for Financial Year 2025-26. Auto-calculate rules for Metro vs Non-Metro cities and landlord PAN declaration limits.

Section 10(13A) Minimum of Three Rule

The amount of HRA exempt from income tax is calculated as the lowest of the following 3 values:

📌 Condition A: Actual HRA component received from employer.
📌 Condition B: Actual Rent Paid - 10% of (Basic Salary + Dearness Allowance).
📌 Condition C: 50% of Basic Salary (Delhi, Mumbai, Kolkata, Chennai) OR 40% of Basic Salary (All other cities).

Metro vs Non-Metro City Classification Table

City Category	Eligible Exemption Limit	Covered Major Cities
Metro Tier 1	50% of Basic Salary	New Delhi (NCR), Mumbai, Kolkata, Chennai
Non-Metro Tier 2 & 3	40% of Basic Salary	Bengaluru, Hyderabad, Pune, Ahmedabad, Gurugram, Noida, Jaipur, Chandigarh, Kochi

Frequently Asked Questions (FAQs)

Can I claim HRA if I pay rent to my parents?

Yes! You can claim HRA by paying rent to your parents. You must execute a formal Rent Agreement, issue monthly rent receipts, and your parents must declare the rental income in their ITR filing.

Is landlord PAN mandatory for claiming HRA?

If your total annual rent paid exceeds ₹1,00,000 per year (~₹8,333/month), it is mandatory to provide the landlord's PAN to your HR/employer.

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