HRA Calculator - Calculate HRA Exemption Online
Calculate your House Rent Allowance exemption under Section 10(13A). Find out how much HRA is tax-free and maximize your tax savings.
HRA Exemption Calculator
Enter 0 if DA is not part of salary
HRA Exemption Formula
HRA Exemption = Minimum of:
- Actual HRA received from employer
- 50% of Basic Salary + DA (Metro city)
- Rent paid minus 10% of Basic Salary + DA
Understanding HRA Exemption
HRA (House Rent Allowance) exemption under Section 10(13A) of the Income Tax Act allows salaried employees to claim tax deduction on rent paid for accommodation. This is one of the most significant tax-saving options available under the Old Tax Regime.
HRA Exemption Formula:
HRA Exemption = Minimum of:
- Actual HRA received from employer
- 50% of (Basic + DA) for Metro cities OR 40% for Non-Metro
- Rent paid minus 10% of (Basic + DA)
Eligibility Conditions:
- You must be a salaried employee receiving HRA
- You must live in a rented accommodation
- You must actually pay rent (not just receive HRA)
- You should not own a house in the same city
- Only available under Old Tax Regime
Metro vs Non-Metro Cities
Metro Cities (50% of Salary)
- Delhi (and NCR)
- Mumbai
- Kolkata
- Chennai
Non-Metro Cities (40% of Salary)
- All other cities including:
- Bangalore, Hyderabad, Pune
- Ahmedabad, Jaipur, Lucknow
- Chandigarh, Kochi, etc.
HRA Calculation Example
| Monthly Basic Salary | Rs 50,000 |
| Monthly HRA Received | Rs 20,000 |
| Monthly Rent Paid | Rs 25,000 |
| City Type | Metro (Mumbai) |
| Calculation: | |
| 1. Actual HRA Received (Annual) | Rs 2,40,000 |
| 2. 50% of Basic (Metro) | Rs 3,00,000 |
| 3. Rent - 10% of Basic | Rs 2,40,000 |
| HRA Exemption (Minimum) | Rs 2,40,000 |
Frequently Asked Questions
What is HRA exemption and who can claim it?
HRA (House Rent Allowance) exemption is a tax benefit under Section 10(13A) for salaried employees who receive HRA as part of salary and pay rent for accommodation. You must be living in a rented property and actually paying rent to claim this exemption. It is only available under the Old Tax Regime.
How is HRA exemption calculated?
HRA exemption is the minimum of three amounts: (1) Actual HRA received, (2) 50% of salary for metro cities or 40% for non-metro cities, (3) Rent paid minus 10% of salary. Salary here means Basic + Dearness Allowance. The lowest of these three amounts is your HRA exemption.
Which cities are considered Metro cities for HRA?
Only 4 cities are considered Metro for HRA calculation: Delhi, Mumbai, Kolkata, and Chennai. Employees in these cities get 50% of salary as HRA exemption limit. All other cities including Bangalore, Hyderabad, Pune are Non-Metro with 40% limit.
Can I claim HRA if I live with my parents?
Yes, you can claim HRA even if living with parents, provided you pay rent to them. You need a formal rent agreement and rent receipts. If annual rent exceeds Rs 1 Lakh, you need to provide parents PAN details. The rent income is taxable for parents.
What documents are needed to claim HRA?
You need: (1) Rent receipts with landlord signature, (2) Rent agreement, (3) Landlords PAN if annual rent exceeds Rs 1 Lakh, (4) Proof of rent payment (bank statements). Keep these documents for at least 6 years for verification.