House Rent Allowance (HRA) Exemption Calculator
Compute statutory HRA tax exemption with multi-period mid-year salary increments, rent variations, and metro vs non-metro rules.
From Form 16 Part B / Salary Slips
Least of 3 statutory limits (Tax-Free)
Added to Net Taxable Salary Income
Salary & Rent Periods
Add separate periods if salary, HRA, or rent changed during the financial year.
How HRA Exemption is Legally Determined (Rule 2A)
Under Section 10(13A) of the Income-tax Act, 1961, the exempt HRA is strictly the lowest of these three statutory amounts:
- Limit 1: Actual House Rent Allowance received from employer for the period.
- Limit 2: Rent paid in excess of 10% of salary (Basic + DA forming part of retirement benefits).
- Limit 3: 50% of salary for residential accommodation in Metro cities, or 40% for Non-Metro cities.
HRA Exemption Statement u/s 10(13A)
Employer: Tata Consultancy Services Ltd
| Period | HRA Recd | Rent - 10% | 50%/40% | Exempt |
|---|---|---|---|---|
| Apr – Sep (H1)6 mos (Metro) | ₹1,80,000 | ₹1,14,000 | ₹1,80,000 | ₹1,14,000 |
| Oct – Mar (H2: Rent Hike)6 mos (Metro) | ₹1,95,000 | ₹1,41,000 | ₹1,95,000 | ₹1,41,000 |
| Total (Full FY) | ₹3,75,000 | -- | -- | ₹2,55,000 |
Supercharge this with Turia Practice
Turia Practice auto-extracts HRA and salary slips from client Form 16s and uploads rent receipts straight to the client vault.
Statutory & Compliance Disclaimer
This tool is an automated calculation, formatting, and compliance aid provided for informational purposes only. It does not constitute formal legal, taxation, or professional auditing advice. Calculations, citations, and draft documents must be independently verified by a qualified Chartered Accountant (CA) or Company Secretary (CS) against statutory provisions and applicable ICAI/ICSI guidelines before execution or certification.