HRA Calculator — House Rent Allowance Exemption
The HRA Calculator helps you calculate the tax-exempt portion of your House Rent Allowance under Section 10(13A) of the Income Tax Act. The exemption is the least of three amounts: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary (metro) or 40% (non-metro).
HRA Exemption Formula
- HRA = Actual HRA received
- 50% = Of basic salary (metro cities)
- 40% = Of basic salary (non-metro cities)
HRA Calculation Example
For a basic salary of ₹50,000/month, HRA of ₹20,000/month, rent of ₹18,000/month in Mumbai (metro): Rule 1 = ₹2,40,000, Rule 2 = (₹2,16,000 - ₹60,000) = ₹1,56,000, Rule 3 = 50% × ₹6,00,000 = ₹3,00,000. Exemption = least = ₹1,56,000. Taxable HRA = ₹2,40,000 - ₹1,56,000 = ₹84,000.
This calculator is for informational and educational purposes only. Tax calculations are based on the Income Tax Act, 2025 (effective April 1, 2026) and may not reflect all individual circumstances. Tax slabs, rebate thresholds, and deduction limits are subject to change through government notifications. Always verify at incometax.gov.in and consult a qualified Chartered Accountant for personalized guidance.
Frequently Asked Questions
Find answers to common questions about hra calculator. Click on any question to expand the answer.
HRA exemption is calculated as the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metros. Metro cities include Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bengaluru.
To claim HRA exemption, you need: (1) Rent receipts with landlord's name and address, (2) Rent agreement if rent exceeds ₹1 lakh/year, (3) Landlord's PAN if rent exceeds ₹1 lakh/year, (4) Proof of HRA component in salary.
Yes, you can claim HRA exemption if you pay rent to your parents. However, your parents must declare the rent as income from house property in their tax returns. The arrangement should be genuine with proper documentation.
No, HRA exemption under Section 10(13A) is NOT available if you opt for the new tax regime under the Income Tax Act, 2025. You can only claim HRA exemption under the old tax regime.
Section 80GG allows deduction for rent paid if you don't receive HRA from employer. The deduction is minimum of: (1) ₹5,000 per month (₹60,000/year), (2) Rent paid minus 10% of total income, (3) 25% of total income. You must not own any residential property.
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