HRA Calculator
Calculate your House Rent Allowance (HRA) exemption for income tax purposes based on your salary, HRA received, and rent paid.
Metro cities include Delhi (NCR), Mumbai, Chennai, and Kolkata
Understanding HRA Exemption
House Rent Allowance (HRA) is a component of your salary structure provided by employers to help employees meet their rental expenses. A portion of HRA is exempt from income tax under Section 10(13A) of the Income Tax Act.
How HRA Exemption Works
The HRA exemption is calculated as the minimum of the following three amounts:
- Actual HRA received from the employer
- Rent paid minus 10% of basic salary
- 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities)
HRA Exemption Formula:
HRA Exemption = Minimum of:
1. Actual HRA received
2. Rent paid - 10% of Basic Salary
3. 50% of Basic Salary (for metro cities) or 40% of Basic Salary (for non-metro cities)
Metro vs Non-Metro Cities
For HRA exemption purposes, the following are considered metro cities:
- Delhi (including NCR)
- Mumbai
- Kolkata
- Chennai
All other cities are considered non-metro cities for HRA exemption calculation.
Documents Required for HRA Exemption
- Rent receipts or rent agreement
- Landlord's PAN (if rent exceeds ₹1 lakh per annum)
- Salary slips showing HRA component
Important Points to Note
- If you live in your own house or with your parents, you cannot claim HRA exemption
- If your landlord is not registered for tax (no PAN), you can submit Form 60 along with rent receipts
- HRA exemption is only available if you actually pay rent
- If rent paid is less than 10% of basic salary, no HRA exemption is available
- For joint rental agreements, each tenant can claim HRA exemption proportionately
How to Use This Calculator
- Enter your basic salary (monthly or annual)
- Enter the HRA received from your employer
- Enter the actual rent paid
- Select whether you live in a metro city or non-metro city
- The calculator will automatically compute your HRA exemption and taxable HRA