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Sec 10(13A) & Rule 2ADirect Tax · Salaried IndividualsAct No. 30 of 2025 Ready

HRA Statutory Exemption Calculator

Compute maximum statutory House Rent Allowance (HRA) tax exemption under Rule 2A 3-point benchmark with Metro (50%) vs Non-Metro (40%) classification, Landlord PAN mandatory alerts, and Section 194-IB rent TDS limits.

Governing Authority: Section 10(13A) read with Rule 2A of Income-tax Rules, 1962 & Income-tax Act, 2025
Standard Salary Profiles & City Presets
1. Salary Components (Per Month)Total Base: ₹9,60,000 p.a.
₹80,000
2. Allowance & Rent Details (Per Month)
₹35,000
₹30,000
30% Slab (+ 4% Cess = 31.20%)
Landlord PAN Mandatory (CBDT Circular No. 08/2013)

Total annual rent paid (₹3,60,000) exceeds ₹1,00,000. You must obtain and report your landlord's PAN to your employer's payroll team to claim HRA exemption on Form 16.

Statutory Assessment

HRA Exemption Result

Rule 2A Engine
Total Tax-Exempt HRA
₹2,64,000
(₹22,000 / month exempt from income tax)
Total HRA ReceivedFrom employer salary CTC
₹4,20,000
Less: Exempt Amount u/s 10(13A)Least of 3 statutory limits
– ₹2,64,000
Taxable HRA Added to SalaryTaxed at marginal slab rate
₹1,56,000
Estimated Tax SavedAt 30% slab + 4% cess
₹82,368(₹6,864/mo)
Exemption Governed By:Clause B: Rent Paid – 10% of Salary

Rule 2A 3-Condition Comparison

1. Actual HRA Received₹4,20,000
As per CTC salary structure
2. Rent Paid – 10% of Salary₹2,64,000
₹3,60,000 – ₹96,000
3. 40% of Salary (Non-Metro)₹3,84,000
40% × ₹9,60,000
The lowest of the three amounts is granted as statutory tax exemption.

Chartered Accountant Statutory Advisory & Compliance Guidelines (Act 2025)

Old Regime vs Act 2025 Default Regime

HRA exemption is claimable under the Old Tax Regime. Under Act 2025 Section 202(1), the default regime provides ₹75,000 standard deduction under Section 19(1) and zero tax up to ₹12,00,000 taxable income under Section 156(2).

Landlord PAN & Rent Receipts

If total annual rent paid exceeds ₹1,00,000 (₹8,333/month), furnishing the Landlord's PAN is mandatory as per CBDT Circular No. 08/2013 to claim HRA through employer Form 16.

TDS on Rent (Sec 393(1) Table Sl. 14)

Individuals paying monthly rent exceeding ₹50,000 must deduct 2% TDS under Section 393(1) Table Sl. 14 / Section 194-IB and submit Form 26QC challan-cum-statement within 30 days.

Rent Paid to Parents / Relatives

You can pay rent to parents and claim HRA if they own the property. Ensure bank transfers, formal rent agreements, and that parents declare the rental income in their respective ITRs.

Rent Deduction for Non-HRA (Sec 153)

If your employer does not provide HRA in your salary structure (or if you are self-employed), you can claim rent deduction under Section 153 / Section 80GG up to ₹5,000/month (₹60,000/year).

Simultaneous Home Loan & HRA

You can claim both HRA and Home Loan interest (Sec 24(b)) / principal (Sec 80C / Sec 123) simultaneously if your own house is in a different city or rented out due to genuine employment reasons.