Calculate House Rent Allowance for X/Y/Z cities with full tax exemption analysis under Section 10(13A)
Your current basic pay (excluding DA)
Based on 2011 Census population
Current DA rate (HRA increases when DA crosses 25%, 50%)
Required for HRA tax exemption calculation under Section 10(13A)
For tax purposes, only 4 cities are "metros"
Fill in the details to see your calculation
House Rent Allowance (HRA) is paid to Central Government employees to compensate for housing expenses. The rate depends on the city category (X/Y/Z) and the current DA rate.
30% of Basic Pay
Min: ₹5,400/month
20% of Basic Pay
Min: ₹3,600/month
10% of Basic Pay
Min: ₹1,800/month
9 cities qualify: Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune, Surat.
~98 cities including: Lucknow, Kanpur, Nagpur, Patna, Indore, Bhopal, Jaipur, Coimbatore, Vadodara, Ludhiana, Agra, Nashik, Faridabad, Meerut, Rajkot, Varanasi, Srinagar, Aurangabad, Dhanbad, Allahabad, Ranchi, Howrah, Jabalpur, Gwalior, Vijayawada, Jodhpur, Madurai, Raipur, Chandigarh, etc.
All other cities and towns not falling under X or Y categories.
HRA rates are automatically revised upwards when DA crosses key thresholds:
Since DA is now 60%, all employees get the maximum HRA rate.
Note: HRA tax exemption is available only under the Old Tax Regime. Under the New Regime (default from FY 2024-25), HRA exemption is NOT available.
Under Old Regime, exempt amount is the least of:
Important: If annual rent exceeds ₹1 lakh, you must provide PAN of the landlord.
For HRA payment, cities are classified as X (9 cities), Y (~98 cities), Z (rest). For tax exemption purposes, only Delhi, Mumbai, Chennai, Kolkata are "metros" with 50% rate; all others get 40%.
No. HRA exemption requires actual rent payment. If you live in your own house or rent-free accommodation, no HRA exemption is allowed.
Yes, in specific cases — e.g., if your owned home is in a different city, or you're staying in a rented house due to job posting while your owned home is rented out or vacant. Consult a CA for your specific case.
Rent receipts (monthly), rent agreement, landlord's PAN (if annual rent exceeds ₹1 lakh), and Form 12BB declaration to your employer.
Yes, legally permitted. But the property must be owned by parents, you must actually pay rent (preferably via bank), and parents must declare it as income. The IT department scrutinizes such claims, so maintain proper documentation.
No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. The New Regime offers lower slab rates but excludes most exemptions including HRA.
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