Section 10(13A) Exemption

This HRA calculator applies the statutory formula: exempt HRA equals the minimum of actual HRA received, rent paid minus 10% of basic salary, and 50% of basic in metro cities (40% elsewhere). The balance is added to taxable income.

Why the 10% Floor Exists

The rent-minus-10% limit assumes you would spend roughly a tenth of basic salary on housing regardless. Only rent above that baseline is treated as incremental housing cost, so the exemption tracks genuine rent burden rather than HRA size.

Claiming It

Declare the exemption to your employer through Form 12BB with rent receipts. If you live with parents and pay them rent, that qualifies too — but the landlord's PAN is required once annual rent crosses ₹1,00,000.