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HRA Calculator

Calculate HRA tax exemption under the old income tax regime.

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Results

Monthly HRA Exemption₹20,000
Annual HRA Exemption₹2.40 L
Taxable HRA (monthly)₹0
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What is HRA?

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

Note: HRA exemption is NOT available under the new tax regime. If you have opted for the new regime, you cannot claim HRA exemption.

Formula

HRA exemption is the MINIMUM of: 1. Actual HRA received 2. Rent paid − 10% of Basic Salary 3. 50% of Basic (metro cities) or 40% of Basic (non-metro)

For Basic ₹50,000, HRA ₹20,000, Rent ₹25,000 in a metro: - Option 1: ₹20,000 - Option 2: ₹25,000 − ₹5,000 = ₹20,000 - Option 3: ₹25,000 - Exemption = ₹20,000 (minimum)

How to use this HRA Calculator?

1. Enter your monthly basic salary. 2. Enter the HRA component from your salary slip. 3. Enter the actual rent you pay. 4. Select metro (50%) or non-metro (40%). 5. The calculator shows your tax-exempt HRA amount.

Frequently asked questions

Which cities are considered metro for HRA?
Only four cities are classified as metro for HRA calculation: Delhi (including NCR areas within Delhi), Mumbai (including areas within municipal limits), Chennai, and Kolkata. All other cities — including Bangalore, Hyderabad, Pune, Ahmedabad, Jaipur — are classified as non-metro (40% of basic). This is a common misconception as many people assume Bangalore is a metro city for HRA purposes.
Do I need rent receipts for HRA?
Yes, if annual rent exceeds ₹1,00,000 (approximately ₹8,334/month), you must submit rent receipts along with the landlord's PAN number to claim HRA exemption. Below ₹1 Lakh/year, a self-declaration is sufficient. Keep receipts with revenue stamps for amounts above ₹5,000/month.
Can I claim HRA if I live with parents?
Yes, you can pay rent to your parents and claim HRA exemption. Create a proper rental agreement, make bank transfers (not cash) for rent, and your parents must show this rental income in their ITR. If your parents are in a lower tax bracket, the family saves tax overall.
Can I claim HRA and home loan benefits simultaneously?
Yes, under the Old Tax Regime, you can claim both HRA exemption (Section 10(13A)) and home loan interest deduction (Section 24) if your self-occupied property is in a different city from where you work and pay rent. This is common for people who own a house in their hometown but work in another city.
Is HRA available in the New Tax Regime?
No. HRA exemption under Section 10(13A) is NOT available in the New Tax Regime. If you are a salaried person paying high rent, this is one of the key reasons to consider staying with the Old Regime. Compare both regimes using our Income Tax Calculator.
What if my actual rent is higher than HRA received?
HRA exemption is limited to the minimum of three values — your exemption cannot exceed the actual HRA received from your employer, even if your rent is very high. However, under Section 80GG (Old Regime), individuals not receiving HRA can claim up to ₹5,000/month for rent paid.
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