Sigma Tech India · Banking

HRA exemption, by the minimum-of-three rule.

Section 10(13A) of the Income Tax Act. Actual HRA received, 50% of basic (metro) or 40% (non-metro), and rent paid minus 10% of basic — exemption is the lowest of the three.

01 Salary & Rent

Monthly figures × 12 (or use annual directly).

Basic Salary + DAsalary part
HRA Receivedfrom employer
Rent Paidto landlord
Employee Nameprints on PDF · optional

02 Computation

The exemption is the smallest of the three limbs.

HRA Exempt
0
per year
HRA Taxable
0
Added to taxable salary
Binding Limb
Smallest of three

The three limbs (annualised)

ParticularsAmountStatus
A. Actual HRA Received
B. 50% of Basic (Metro)
C. Rent Paid − 10% of Basic
Exemption (Minimum of A, B, C)
Available only under the Old Tax Regime. Permanent Account Number (PAN) of the landlord is mandatory if annual rent exceeds ₹1 lakh. — sigmatechind.com
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Banking Toolkit · HRA Exemption
Engineered in India · sigmatechind.com
Report Date
ReferenceHRA-—
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HRA Exemption · Section 10(13A)

HRA Exemption Computation

Prepared for valued employee.

HRA Exempt (Annual)
₹0
HRA Taxable
₹0
Binding Limb

Computation

Rule. Under Section 10(13A), HRA exemption is the lowest of: (A) Actual HRA received, (B) 50% of basic salary (metro: Mumbai, Delhi, Chennai, Kolkata) or 40% (other cities), and (C) Rent paid minus 10% of basic salary. This deduction is available only under the Old Tax Regime.