HRA Exemption Calculator
Paying rent and want to know how much HRA exemption you can actually claim? This calculates your exempt amount under Section 10(13A) - which is the lowest of three values: HRA received, rent minus 10% of salary, or 50%/40% of salary depending on your city.
This calculator is designed for India. Rates and rules are based on Indian regulations. If you are outside India, the values may not apply to your country.
How to use
- Pick whether you want to enter monthly or annual figures - whichever is easier.
- Enter your basic salary, DA, HRA component from your payslip, and the rent you're actually paying.
- Select metro if you're in Delhi, Mumbai, Chennai, or Kolkata. Non-metro for everywhere else.
- You'll see exactly how much of your HRA is tax-exempt and what's taxable.
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House Rent Allowance exemption under Section 10(13A) is the lowest of three values: actual HRA received, rent paid minus 10% of basic salary, or 50% of basic salary in metro cities / 40% in non-metros. Only the exempt portion reduces your taxable income. If you live in your own house or do not pay rent, no exemption applies even if HRA appears on your salary slip.
Getting this right matters more than most people realise. If your rent is high relative to basic salary, you might be leaving a significant deduction unclaimed. Many employees just accept whatever their employer calculates without verifying. The four metro cities for HRA purposes are Mumbai, Delhi, Kolkata, and Chennai - Bengaluru, Hyderabad, and Pune are non-metro.
Frequently Asked Questions
Do I need rent receipts to claim HRA?
Yes, if annual rent exceeds Rs.1 lakh. Your employer requires rent receipts and the landlord PAN if monthly rent crosses Rs.8,333. For smaller amounts, a self-declaration and bank transfer proof is usually sufficient.
Can I claim HRA exemption and home loan benefits simultaneously?
Yes. HRA applies to rent paid on where you currently live. Home loan deductions apply to a property you own. If you bought a house in another city but rent where you work, both deductions can apply at the same time.
Can I pay rent to parents and claim HRA?
Yes, but the arrangement must be genuine. Your parents must declare the rental income in their tax return. Pay via bank transfer each month to establish a paper trail. The property should be in their name.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.