HRA Exemption Calculator in Ahmedabad
If you live in rented accommodation and receive House Rent Allowance, part of it is exempt from tax under Section 10(13A) — but only under the old tax regime. The exemption is the least of three figures. Enter your annual basic + DA, HRA received, rent paid and city type to see your exempt and taxable HRA.
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Talk to an AMFI-registered Mutual Fund Distributor (ARN-354187) in Ahmedabad. Free, no-obligation guidance tailored to your numbers. We'll bring up your scenario — HRA exempt from tax: ₹1,80,000.
How it's calculated
The formula
Exempt HRA = least of: actual HRA received; rent paid − 10% of (basic + DA); and 50% of (basic + DA) for metro cities / 40% for non-metro. Taxable HRA = HRA received − exempt HRA.
Assumptions
- Figures are annual (basic + DA, HRA, rent).
- Old tax regime — HRA is fully taxable under the new regime.
- You actually pay the rent and live in the rented home.
Sources
Real-world scenarios
See exactly how the numbers play out in the situations people actually face — so there are no surprises before you commit.
A metro employee paying ₹20,000 rent
On a ₹6 lakh basic, ₹3 lakh HRA received and ₹2.4 lakh annual rent in a metro, the exempt HRA is about ₹1.8 lakh — leaving ₹1.2 lakh taxable. The exemption is the lowest of three figures, so the actual rent you pay is usually what caps it.
Metro 50% vs non-metro 40%
Metro residents can count up to 50% of basic toward the HRA exemption, versus 40% for non-metros — a meaningful difference on the same salary. The four metros for this rule are Delhi, Mumbai, Kolkata and Chennai.
No rent receipts, no exemption
The HRA exemption only applies under the old tax regime and requires proof of rent actually paid — receipts, and the landlord’s PAN if annual rent exceeds ₹1 lakh. Pay rent to a family member and you can still claim it, provided the arrangement is genuine and documented.
Illustrative figures on standard reducing-balance / compounding assumptions — your actual numbers may vary.
Frequently asked questions
The details worth knowing before you rely on these numbers.
How is HRA exemption calculated?
The exemption under Section 10(13A) is the least of three amounts: (1) actual HRA received; (2) rent paid minus 10% of basic salary (basic + DA); and (3) 50% of basic for metro cities or 40% for non-metro. The lowest of these is exempt; the rest is taxable.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai count as metro (50% of basic). All other cities, including Ahmedabad, are non-metro (40% of basic).
Can I claim HRA under the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the old tax regime. Under the new regime, HRA is fully taxable.
Can I claim HRA and a home loan together?
Yes, in genuine cases — for example, you rent in one city for work while owning (and repaying a loan on) a house elsewhere, or your owned home is genuinely not occupiable. You may claim both the HRA exemption and the home-loan interest deduction.
What documents do I need to claim HRA?
Rent receipts and a rent agreement; if your annual rent exceeds ₹1 lakh, you must also report your landlord’s PAN to your employer to claim the exemption.
Can I claim HRA if I pay rent to my parents?
Yes, if the arrangement is genuine — you actually pay rent to a parent who owns the home, ideally by bank transfer with a rent agreement, and they report that rent as income in their return. It is a legitimate way to claim the exemption, but it must be real; a paper-only arrangement can be disallowed. This benefit applies under the old regime only.
What if my salary has no HRA component — can I still claim rent?
You may be able to claim a deduction for rent under Section 80GG instead, up to ₹60,000 a year, if you (and your spouse or minor child) do not own a home in that city and receive no HRA. It applies under the old tax regime only and has its own conditions — check your eligibility before claiming.
Is claiming HRA worth it if the new regime suits me better?
The HRA exemption only reduces tax under the old regime, so its value depends on which regime you pick. If the new regime’s lower slab rates leave you better off overall even without HRA, that may be the smarter choice. Run your numbers in both regimes with the income-tax calculator before deciding.
Is this HRA calculator free?
Yes — it is free, needs no sign-up, and runs entirely in your browser. Your inputs stay on your device unless you choose to speak with an Apex TechFin advisor.
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