HRA Exemption Calculator
Calculate HRA tax exemption.
Basic Salary (Monthly)
HRA Received (Monthly)
Rent Paid (Monthly)
Live in Metro City?
Total HRA
₹1,80,000
HRA Calculator – Tax Exemption helper
House Rent Allowance (HRA) is a component of salary that can be claimed as a tax deduction if you live in a rented house.
The HRA Calculator computes the exempt portion of your HRA to help in tax planning.
What is a HRA Calculator?
It calculates the lowest of the three conditions specified in the Income Tax Act.
It tells you how much of your HRA is tax-free and how much is taxable.
How does this HRA Calculator work?
The calculator uses the following formula:
Minimum of 3 limits
- 1. Actual HRA received.
- 2. 50% of salary (Metro) or 40% (Non-Metro).
- 3. Rent paid minus 10% of salary.
- Salary = Basic + DA.
How to use this HRA Calculator effectively
- Enter Basic Salary and DA.
- Enter HRA received.
- Enter Rent paid.
- Select if you live in a Metro city.
- The tool calculates the exemption.
Commonly asked questions
What is HRA?
House Rent Allowance (HRA) is a salary component paid by employers to employees to meet accommodation expenses.
How is HRA exemption calculated?
It is the minimum of: 1) Actual HRA received, 2) Rent paid - 10% of Basic Salary, 3) 50% (Metro) or 40% (Non-Metro) of Basic Salary.
What constitutes Basic Salary?
For HRA, salary includes Basic Pay + Dearness Allowance (if it forms part of retirement benefits).
Who can claim HRA?
Salaried individuals who receive HRA and pay rent for their accommodation.
Can I claim HRA if I live with parents?
Yes, if you pay rent to your parents and they show it as income. You need a rent agreement and receipts.
Can I claim HRA and Home Loan deduction?
Yes, you can claim both HRA exemption and home loan interest deduction if you own a house but live in a rented place.
Is PAN of landlord mandatory?
Yes, if the annual rent exceeds ₹1 Lakh, you must provide the landlord's PAN to your employer.
What if I don't pay rent?
If you live in your own house or do not pay rent, the entire HRA received is fully taxable.
Which cities are Metro?
For HRA purposes, only Delhi, Mumbai, Kolkata, and Chennai are considered Metro cities (50% rule).
Is a rent receipt required?
Yes, employers typically ask for rent receipts as proof to allow the exemption.
Can I claim HRA for paying rent to spouse?
Generally, paying rent to a spouse is not accepted by the IT department as a genuine commercial transaction.
What if rent changes mid-year?
HRA exemption should be calculated on a monthly basis to account for changes in salary, rent, or location.
Is there a limit on HRA exemption?
The exemption cannot exceed the actual HRA received.
Can self-employed claim HRA?
No, but they can claim deduction for rent paid under Section 80GG, subject to limits.
What is Section 10(13A)?
It is the section of the Income Tax Act under which HRA exemption is granted.
Do I need a revenue stamp?
A revenue stamp is usually affixed on rent receipts for cash payments exceeding ₹5,000.
Can I claim HRA in New Tax Regime?
No, HRA exemption is not available under the New Tax Regime.
What if my employer doesn't give HRA?
You cannot claim HRA exemption. You might check eligibility for Section 80GG deduction.
Is maintenance charge included in rent?
No, maintenance charges paid to society are not considered as rent for HRA calculation.
Can I claim for shared accommodation?
Yes, you can claim for your share of the rent paid.