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About this tool
Find your exempt and taxable HRA with the three-rule method, metro limits, and the tax you save at your slab.
Under Section 10(13A) of the Income-tax Act, the tax-free part of your house rent allowance is the lowest of three figures: the actual HRA received, rent paid minus 10% of basic + DA, and 50% of basic + DA in a metro or 40% elsewhere. This calculator takes your monthly basic + DA, HRA and rent, shows all three rule amounts side by side, and reports which one binds, the exempt and taxable HRA per month and per year, and the tax that exemption saves at your slab. It is for salaried employees under the old tax regime working out what to claim or what their payroll declaration should say.
Open HRA Exemption Calculator on AltFTool — it loads instantly in your browser.
Enter Monthly basic salary + DA (₹), Monthly HRA received (₹) and Monthly rent paid (₹).
Set City type to Metro (50%) or Non-metro (40%) — only Delhi, Mumbai, Kolkata and Chennai count as metro.
The lowest of the three rule cards is tagged Your exemption; set Your income tax slab for the tax saved, then press Copy summary.
You see the actual-HRA, rent-minus-10% and 50%/40% figures together, so it is obvious which one is limiting your claim and why.
A single toggle switches the third rule between 50% and 40% of basic + DA, which is the difference most manual calculations get wrong.
Exempt and taxable HRA appear per month and per year, and the exempt amount is multiplied by your chosen slab to show what it is actually worth.
It is the least of three amounts: actual HRA received; rent paid minus 10% of basic + DA; and 50% of basic + DA if you live in a metro or 40% if you do not. On ₹50,000 basic + DA, ₹20,000 HRA and ₹18,000 rent in a metro, the three come to ₹20,000, ₹13,000 and ₹25,000, so ₹13,000 a month is exempt and ₹7,000 is taxable.
Only four — Delhi, Mumbai, Kolkata and Chennai — qualify for the 50% limit; every other city, including Bengaluru, Hyderabad, Pune and Gurugram, uses 40%. On ₹50,000 basic + DA that is a ₹25,000 versus ₹20,000 ceiling, so picking the wrong one can overstate the claim by ₹60,000 a year.
No. The Section 10(13A) exemption is available only under the old regime, which is why the summary this tool copies says so explicitly. If you have opted for the new regime, your entire HRA is taxable and this calculation only matters for comparing the two.
Rent receipts and a rent agreement are the usual evidence, and where annual rent exceeds ₹1,00,000 employers require the landlord's PAN as well. You must genuinely be paying rent for accommodation you occupy and not own — this page is informational, so confirm your own position with a chartered accountant or tax adviser before filing.
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