HRA Exemption Calculator

House Rent Allowance (HRA) Exemption in India: HRA is a component of your salary paid by the employer to meet rental expenses. Under Section 10(13A) of the Income Tax Act, HRA is exempt from tax up to certain limits. This calculator helps you determine how much of your HRA is tax-exempt.

Calculate HRA Exemption
City Type
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HRA Exemption Rules
Exemption is the least of:
  • Actual HRA received from employer
  • 50% of (Basic Salary + DA) for metro cities, 40% for non-metro cities
  • Rent paid minus 10% of (Basic Salary + DA)
Important Notes:
  • You need to submit rent receipts to claim HRA exemption
  • If rent paid is ₹1 lakh or more annually, landlord's PAN is required
  • No HRA exemption if you live in your own house
HRA Exemption Calculation Results
Calculation Components (Annual)
Basic Salary + DA ₹0
HRA Received ₹0
Rent Paid ₹0
10% of Basic + DA ₹0
Exemption Calculation
1. Actual HRA Received ₹0
2. 50% of (Basic + DA) ₹0
3. Rent - 10% of (Basic + DA) ₹0
HRA Exemption (Least of 1, 2, 3) ₹0
Taxable HRA ₹0
Monthly HRA Breakdown
Monthly HRA Received ₹0
Monthly HRA Exemption ₹0
Monthly Taxable HRA ₹0
HRA Visualization

HRA Guide & Tutorial

Understanding House Rent Allowance (HRA)

House Rent Allowance (HRA) is a component of salary provided by employers to help employees meet their rental expenses. Under Section 10(13A) of the Income Tax Act, employees can claim exemption on HRA subject to certain conditions.

Eligibility Criteria
  • Must be a salaried employee
  • Should receive HRA as part of salary
  • Must pay rent for accommodation
  • Should have rent receipts/proof
Important Notes
  • No HRA if living in own house
  • PAN of landlord if rent > ₹1 lakh/year
  • Metro cities have higher exemption
  • Rent paid to parents needs proof
HRA Exemption Rules
Component Metro Cities Non-Metro Cities
Basic Salary Percentage 50% of Basic + DA 40% of Basic + DA
Metro Cities Delhi, Mumbai, Kolkata, Chennai
Documentation Rent receipts, lease agreement, landlord PAN (if applicable)
Pro Tip: HRA exemption is calculated monthly but claimed annually. Keep monthly rent receipts and maintain proper documentation throughout the year.
HRA Exemption Calculation
Exemption is Least of Following Three
  1. Actual HRA received from employer
  2. 50% of (Basic + DA) for metro cities, 40% for non-metro cities
  3. Actual rent paid minus 10% of Basic + DA
Example Calculation:

For Metro City:

  • Basic Salary: ₹50,000 per month
  • HRA Received: ₹25,000 per month
  • Rent Paid: ₹30,000 per month
  • Calculation:
    • 1. Actual HRA = ₹25,000
    • 2. 50% of Basic = ₹25,000
    • 3. Rent - 10% of Basic = ₹30,000 - ₹5,000 = ₹25,000
    • Exemption = Least of above = ₹25,000
How to Use the Calculator
1
Select City Type

Choose whether you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or a non-metro city.

2
Enter Salary Details

Input your monthly basic salary, dearness allowance (if applicable), and HRA received.

3
Provide Rent Details

Enter the monthly rent you pay for your accommodation.

4
Review Results

Check the calculated HRA exemption and taxable HRA amounts, along with the detailed breakdown.

Frequently Asked Questions

No, HRA exemption is not available if you:

  • Live in your own house
  • Live in a house owned by your spouse
  • Don't pay any rent

In such cases, the entire HRA becomes taxable.

Required documents include:

  • Basic Documents:
    • Rent receipts
    • Lease agreement
    • Landlord's details
  • Additional Requirements:
    • Landlord's PAN if rent > ₹1 lakh/year
    • Form 12BB from employer
    • Rent payment proof (bank statements)

Keep these documents for at least 8 years.

Yes, but with additional requirements:

  • Required Documents:
    • Registered rent agreement
    • Parent's PAN details
    • Proof of rent payment
    • Property ownership proof
  • Important Notes:
    • Parents must show rental income in tax returns
    • Transaction should be genuine
    • Market rent should be reasonable

Maintain proper documentation to avoid scrutiny.

Alternative documentation options:

  • Acceptable Proofs:
    • Bank statements showing rent payment
    • Rent agreement
    • Letter from landlord
  • Best Practices:
    • Pay rent through bank transfer
    • Keep digital records
    • Get proper rent receipts monthly

Always maintain proper documentation for tax purposes.

Handle these situations carefully:

  • Rent Changes:
    • Calculate month-wise
    • Keep proof of change
    • Update employer
  • Salary Changes:
    • Recalculate based on new salary
    • Pro-rate for partial months
    • Keep salary revision letters
  • City Changes:
    • Apply metro/non-metro rates accordingly
    • Document relocation
    • Update address proof

Calculate exemption separately for each period.

Coming Soon: Enhanced HRA Calculator

We're working on enhancing this calculator with the following features:

  • Integration with income tax calculator for total tax saving estimation
  • Support for mid-year changes in rent or salary
  • Rent receipt generator with landlord details
  • Metro city selection with location-specific rules