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HRA Exemption Calculator

Calculate HRA tax exemption under Section 10(13A). 50% for metro, 40% for non-metro. Old tax regime only.

GratuityPPFEPF / PFEMISIPFDNPSIncome TaxHRA

HRA Exemption Result

(A) Actual HRA received: ₹2,40,000

(B) 40% of salary (non-metro): ₹1,92,000

(C) Rent − 10% of salary: ₹1,80,000 − ₹48,000 = ₹1,32,000

HRA Exempt (tax-free)

₹1,32,000

Minimum of (A), (B), (C)

HRA Taxable

₹1,08,000

Approximate annual tax savings

20% bracket

₹27,456/yr

30% bracket

₹41,184/yr

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House Rent Allowance (HRA) is a component of salary that employers pay to employees to cover rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as tax-exempt, but only under the old tax regime.

What is this calculator?

An HRA Calculator estimates how much of your HRA is tax-exempt and how much is taxable. Enter your basic salary, DA, HRA received, and rent paid. The calculator applies the 'least of three' rule and shows your exemption, taxable HRA, and approximate tax savings.

Formula

HRA exemption = Least of these three:

(A) Actual HRA received from employer.
(B) 50% of salary (Basic + DA) if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata), or 40% for non-metro.
(C) Rent paid − 10% of salary (Basic + DA).

'Salary' = Basic Pay + Dearness Allowance (only if DA forms part of retirement benefits). This is as per Rule 2A of the Income Tax Rules.

Example

Raghu lives in Mumbai. Basic salary: ₹50,000/month. HRA received: ₹1,00,000/year. Rent paid: ₹15,000/month. (A) Actual HRA = ₹1,00,000. (B) 50% of salary (metro) = 50% × 6,00,000 = ₹3,00,000. (C) Rent − 10% salary = ₹1,80,000 − ₹60,000 = ₹1,20,000. Least = ₹1,00,000. Raghu's entire HRA is tax-free. If he was in a non-metro city, (B) would be 40% × 6,00,000 = ₹2,40,000. Still ₹1,00,000 is least, so same exemption.

Benefits

  • ✓Know exactly how much of your HRA is tax-free before filing ITR.
  • ✓Compare metro vs non-metro exemption to understand the impact of city classification.
  • ✓See approximate tax savings at 20% and 30% brackets instantly.
  • ✓Plan rent payments and salary restructuring for maximum HRA benefit.

Frequently Asked Questions

Can I claim HRA by paying rent to my parents?
Yes. If your parents own the house and declare the rent as 'income from house property' in their ITR, you can pay them rent and claim HRA exemption. Maintain a rental agreement and pay via bank transfer.
Is HRA available under the new tax regime?
No. HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new regime (Section 115BAC), HRA becomes fully taxable.
What if my annual rent exceeds ₹1 lakh but landlord won't give PAN?
Landlord PAN is mandatory if annual rent exceeds ₹1,00,000. Without it, the employer or tax department may disallow the HRA claim entirely. Get the PAN at the start of tenancy.
Can I claim both HRA and home loan deductions?
Yes. If you own a house (with home loan) in one city and live in a rented property in another city for work, you can claim both HRA exemption and home loan interest deduction under Section 24(b).
I forgot to submit rent receipts to HR. Can I still claim?
Yes. Claim HRA exemption when filing your ITR. If excess TDS was deducted, you'll get a refund. Keep rent receipts and bank transfer proof as evidence.

HRA exemption is available only under the old tax regime. For the new regime, HRA is fully taxable. Consult a tax advisor for personalised advice.