Section 10 Exemptions Calculator India — Salary Tax Exemptions (FY 2025-26)
Calculate your tax-exempt salary components under Section 10: HRA, LTA, children education, hostel, transport allowance, gratuity, leave encashment (₹25L cap), VRS, and commuted pension. See which exemptions survive the new tax regime. Interactive checklist of all Section 10 exemptions with amounts. Updated for FY 2025-26.
How to Use This Calculator
My Exemptions tab
Enter your annual basic salary, HRA received, rent paid, and select metro/non-metro. Expand "More options" to add LTA, children education, hostel allowance, transport (disabled), and uniform allowance. The calculator computes each exemption and shows the total exempt amount with estimated tax saving. Switch between old and new regime to see which exemptions disappear.
Leave Encashment tab
For employees retiring or leaving service: enter your leave encashment amount, monthly basic + DA (average of last 10 months), earned leave balance (days), and years of service. The calculator applies the 4-factor test under Section 10(10AA) — actual amount, &rupee;25L cap, 10 months’ salary, and leave balance × daily salary — and shows the exempt and taxable portions. Government employees get full exemption.
Section 10 Checklist tab
An interactive checklist of all Section 10 exemptions — tick which ones apply to you, enter amounts, and get an auto-total. Items marked with a star (★) are commonly missed exemptions. In new regime, blocked exemptions are greyed out. Use this for ITR filing or salary structure optimization.
Share your result
Every input is encoded in the URL. Click Share to send your exact exemption breakup to your CA, HR department, or save for your tax records.
Section 10 Exemption Formulas
Section 10(13A) — HRA Exemption
Exempt HRA = least of:
(a) HRA actually received
(b) 50% of basic salary (metro) / 40% of basic salary (non-metro)
(c) Rent paid − 10% of basic salary
Metro cities: Delhi, Mumbai, Chennai, Kolkata. Old regime only.
Section 10(5) — LTA
Exempt = actual travel cost (economy airfare or AC 1st class rail, whichever is less)
Twice in a block of 4 years. Current block: 2022–2025. Domestic travel only. Old regime only.
Section 10(14) — Prescribed Allowances (Rule 2BB)
Children education: &rupee;100/month × children (max 2) = &rupee;2,400/year
Hostel expenditure: &rupee;300/month × children (max 2) = &rupee;7,200/year
Transport (blind/deaf/ortho disabled): &rupee;3,200/month = &rupee;38,400/year
Uniform: actual expenditure on employer-prescribed uniform. All old regime only.
Section 10(10AA) — Leave Encashment at Retirement
Exempt = least of:
(a) Actual leave encashment received
(b) &rupee;25,00,000 (CBDT Notification 31/2023, effective 1 Apr 2023)
(c) 10 months × average salary (basic + DA, last 10 months)
(d) Cash equivalent of earned leave balance (max 30 days per completed year of service) × average daily salary
Government employees: fully exempt, no cap. Both regimes.
Section 10(10) — Gratuity
Government: Fully exempt.
Private (Gratuity Act): Least of: (a) gratuity received, (b) &rupee;25,00,000, (c) 15/26 × last drawn salary × years of service.
Private (no Gratuity Act): Least of: (a) gratuity received, (b) &rupee;25,00,000, (c) ½ × avg salary (10 months) × years of service.
Both regimes.
Section 10(10A) — Commuted Pension
Government: Fully exempt.
Private with gratuity: 1/3 of full commuted value exempt.
Private without gratuity: 1/2 of full commuted value exempt.
Both regimes.
Section 10(10C) — VRS Compensation
Up to &rupee;5,00,000 exempt if VRS scheme meets Rule 2BA conditions (employee ≥40 years or 10+ years of service). One-time benefit. Both regimes.
Worked Examples
Example 1: Salaried Employee — Section 10 Exemptions (Old Regime)
Rahul (35) works in Bengaluru with CTC &rupee;15,00,000. Basic salary &rupee;6,00,000/year, HRA &rupee;3,00,000/year. He pays rent of &rupee;2,40,000/year (&rupee;20,000/month). He has 2 children in school. Bengaluru is non-metro for HRA.
HRA Exemption — Section 10(13A)
Other Exemptions
Tax saving at 20% slab + 4% cess: &rupee;2,12,400 × 20.8% = &rupee;44,179/year (approximately &rupee;3,682/month).
Example 2: Leave Encashment at Retirement
Meera (58) retires from a private company after 30 years. She receives &rupee;12,00,000 as leave encashment. Her last 10 months’ average basic + DA is &rupee;80,000/month. She has accumulated 300 earned leave days.
4-Factor Exemption Test
Key insight: The &rupee;25L cap (factor 2) was not the limiting factor here — 10 months’ salary (factor 3) was. Many employees assume the cap is always the constraint, but often the salary-based limit or leave-balance limit is lower.
Section 10 Exemptions: Old vs New Regime (FY 2025-26)
| Exemption | Old Regime | New Regime | Limit |
|---|---|---|---|
| 10(13A) HRA | ✓ | ✗ | Least of 3 factors |
| 10(5) LTA | ✓ | ✗ | Actual travel cost |
| 10(14) Children Education | ✓ | ✗ | &rupee;2,400/year (2 children) |
| 10(14) Hostel Expenditure | ✓ | ✗ | &rupee;7,200/year (2 children) |
| 10(14) Transport (Disabled) | ✓ | ✗ | &rupee;38,400/year |
| 10(10) Gratuity | ✓ | ✓ | &rupee;25L (private) / Fully exempt (govt) |
| 10(10A) Commuted Pension | ✓ | ✓ | Govt fully / Private 1/3 or 1/2 |
| 10(10AA) Leave Encashment | ✓ | ✓ | &rupee;25L cap (govt fully exempt) |
| 10(10C) VRS | ✓ | ✓ | &rupee;5,00,000 |
| 10(10D) LIC Maturity | ✓ | ✓ | Premium ≤10% of SA; aggregate &rupee;5L cap |
Rule of thumb: Employment-related recurring allowances (HRA, LTA, children edu) are blocked in new regime. Retirement/termination-related exemptions (gratuity, leave encashment, VRS, pension) survive in both regimes.