HRA Exemption Calculator
Salary & Rent Details
Metro cities: Delhi, Mumbai, Kolkata, Chennai. All others are non-metro.
HRA Exemption = Minimum of 3 conditions:
- 50% of Basic Salary
- Actual HRA Received
- Rent Paid - 10% of Basic Salary
Three-Way Calculation
50% of annual basic salary
Total HRA received in the year
Annual rent minus 10% of basic salary
Annual Summary
Optimization Tip
Your HRA exemption is limited by the Rent - 10% Basic condition. To maximize exemption, your rent should be at least ₹25,0,00/month.
Rent Receipt Reminder
If annual rent exceeds Rs 1,00,000, you must provide your landlord's PAN to your employer. Failure to do so may result in your HRA exemption being denied.
Keep rent receipts and rental agreement as proof for IT assessment.
What Does This Tool Do?
This HRA Exemption Calculator helps you determine the exempt and taxable portions of House Rent Allowance under Section 10(13A) of the Income Tax Act. It is designed for salaried employees paying rent, tax planners, and HR professionals who need quick and reliable results.
When Should You Use It?
You should use this tool when:
- •You receive HRA as part of your salary and pay rent
- •You want to know how much tax you can save through HRA exemption
- •You need to decide whether to claim HRA or Section 80GG deduction
- •You are planning to move to a different city and want to estimate tax impact
How to Use This Tool
Enter or upload the required information
Click on the calculate / convert button
Get instant results
Common Use Cases
- •Calculating annual HRA exemption for income tax filing
- •Determining the optimal rent amount to maximize tax savings
- •Understanding metro vs non-metro city impact on HRA exemption
- •Planning salary restructuring for maximum tax benefit
- •Preparing documents for rent receipt submission to employer
Frequently Asked Questions
What is HRA exemption?
HRA exemption is the portion of your House Rent Allowance that is exempt from income tax under Section 10(13A). It is the minimum of three conditions: 50%/40% of basic salary, actual HRA received, or rent paid minus 10% of basic salary.
Metro vs Non-Metro: What is the difference?
For metro cities (Delhi, Mumbai, Kolkata, Chennai), the exemption is 50% of basic salary. For non-metro cities, it is 40% of basic salary. This affects only the first condition of the three-way calculation.
Can I claim HRA if I own a house?
If you own a house in the same city where you work and live in it, you cannot claim HRA exemption. However, if you live in a rented house in a different city from your owned house, you can claim HRA.
What if I pay rent to my parents?
You can claim HRA exemption by paying rent to your parents, provided you have a valid rental agreement and rent receipts. Your parent will need to show this rental income in their tax return.
Do I need landlord PAN for HRA?
Yes, if your annual rent payment exceeds Rs 1,00,000, you must provide your landlord's PAN details to your employer. Without PAN, the HRA exemption claim may be rejected.