🏠 HRA Exemption Calculator

Calculate HRA exemption under Income Tax for salaried employees in India. Free HRA calculator for metro and non-metro cities.


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What is a HRA Exemption Calculator?

House Rent Allowance (HRA) is a component of salary that salaried employees receive to cover their rent expenses. The good news: a portion of HRA is exempt from income tax, reducing your taxable income significantly if you live in a rented house.

HRA exemption is one of the most commonly miscalculated tax benefits in India. Many salaried people either claim too little (missing out on savings) or claim incorrectly (risking notices). Our calculator tells you the exact exempt amount based on three conditions under Section 10(13A).

How is it calculated?

HRA exemption is the minimum of these three amounts:

1. Actual HRA received from employer
2. 50% of basic salary (metro cities) or 40% (non-metro cities)
3. Rent paid minus 10% of basic salary

Metro cities: Delhi, Mumbai, Chennai, Kolkata
Non-metro: All other cities

Example: Basic = ₹40,000 | HRA received = ₹20,000 | Rent paid = ₹18,000 | City: Hyderabad
• Condition 1: ₹20,000
• Condition 2: 40% × ₹40,000 = ₹16,000
• Condition 3: ₹18,000 − 10% × ₹40,000 = ₹14,000
• Exemption = Minimum = ₹14,000

How to use this calculator

1. Enter your monthly basic salary (not CTC — only basic salary component)
2. Enter HRA received per month from your salary slip
3. Enter actual rent paid per month
4. Select city type — metro or non-metro
5. Calculate to see your exact monthly and annual HRA exemption
6. The remaining HRA (above exemption) is added to your taxable income

Benefits

Know your exact exemption: Stop guessing — get the precise amount
Reduce taxable income: HRA exemption directly reduces your income tax liability
Both regimes compared: Note that HRA exemption is only available under the old tax regime
Rent receipts: For rent above ₹1 lakh/year, landlord's PAN must be provided to employer

Frequently asked questions

Can I claim HRA if I live with parents?
Yes — you can pay rent to your parents and claim HRA exemption. Your parents must show this rental income in their ITR. Make sure to have a proper rent agreement and bank transfer records. This is legal and commonly used.
Can I claim both HRA and home loan interest?
Yes, if you own a house in a different city and live on rent in your work city. You can claim HRA for rent paid and Section 24 deduction for home loan interest on your own house. Both benefits together are fully legal.
What documents do I need for HRA claim?
Rent receipts (monthly), rent agreement, landlord's name and address, landlord's PAN (if rent exceeds ₹1 lakh/year). Submit these to your employer before the year-end TDS declaration deadline.
Is HRA available in the new tax regime?
No. HRA exemption is only available under the old tax regime. Under the new regime, the full HRA received is taxable. This is a key reason why high-rent employees often benefit from the old regime.

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