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Home›HRA Exemption Calculator

HRA Exemption Calculator

Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A). Find out how much of your HRA is tax-free.

Metro = Delhi, Mumbai, Kolkata, Chennai (50%). All others = 40%.

HRA Tax Exemption (Yearly)

₹1,20,000

Rule applied: Rent - 10% Basic

Total HRA Received₹2,40,000/yr
HRA Exempt₹1,20,000/yr
HRA Taxable₹1,20,000/yr

Tax Saved (30% slab)₹36,000/yr
Tax Saved (20% slab)₹24,000/yr

📋 HRA Exemption Rules (Yearly)

Rule 1: Actual HRA

₹2,40,000

Rule 2: 50% of Basic+DA

₹3,00,000

Rule 3: Rent - 10% Basic

₹1,20,000

✅ Minimum = This applies

💡 Tips to Maximize HRA

  • Keep rent receipts and a proper rent agreement
  • If rent > ₹1 lakh/year, you need landlord's PAN
  • You can pay rent to parents (they must declare rental income)
  • HRA + Home Loan benefits can be claimed simultaneously if you live in a different city

💡 Related Tools

CTCSalary BreakdownTaxIncome Tax CalculatorCompareRent vs BuyTDSTDS Calculator

Frequently Asked Questions

How is HRA exemption calculated?▼
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) 50% of Basic+DA for metro cities / 40% for non-metro, (3) Rent paid minus 10% of Basic+DA.
Which cities are considered metro for HRA?▼
Only Delhi, Mumbai, Kolkata, and Chennai are considered metro for HRA calculation (50% rule). All other cities use the 40% rule.
Can I claim HRA if I live with parents?▼
Yes! You can pay rent to your parents and claim HRA. Have a proper rent agreement and pay via bank transfer. Your parents must show it as rental income.
What documents do I need for HRA claim?▼
Rent receipts (with landlord PAN if rent > ₹1L/year), rent agreement, and bank statements showing rent payments.
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