HRA Calculator

Calculate your House Rent Allowance tax exemption

Enter Your Details

₹

Your basic salary per year

₹

DA forming part of salary (if any)

₹

HRA component from your salary slip

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Total rent paid during the year

Metro Cities (50%): Delhi, Mumbai, Chennai, Kolkata
Non-Metro (40%): All other cities including Bangalore, Hyderabad, Pune, Ahmedabad, etc.

Your HRA Exemption

You need to pay rent to claim HRA exemption
HRA Exemption
₹0
Taxable HRA: ₹0

Calculation Breakdown

1. Actual HRA Received ₹0
2. 50% of Salary ₹0
3. Rent - 10% of Salary ₹0
Old Regime Only: HRA exemption is available only in the Old Tax Regime. If you opt for the New Regime, HRA is fully taxable.

Exemption = Lowest of the 3 rules above. This is for estimation only - consult a tax professional for accurate advice.

How HRA Exemption is Calculated

House Rent Allowance (HRA) exemption is available to salaried employees who live in rented accommodation and receive HRA as part of their salary. Note: This exemption is only available in the Old Tax Regime. If you opt for the New Tax Regime, HRA is fully taxable.

HRA Exemption = Minimum of:
1. Actual HRA received from employer
2. 50% of Salary (Metro) or 40% of Salary (Non-Metro)
3. Rent Paid - 10% of Salary

Salary for HRA calculation = Basic + Dearness Allowance (if DA forms part of retirement benefits)

Example Calculation

  • Basic Salary: ₹50,000/month = ₹6,00,000/year
  • HRA Received: ₹20,000/month = ₹2,40,000/year
  • Rent Paid: ₹15,000/month = ₹1,80,000/year
  • City: Mumbai (Metro)

Calculation:

  • Rule 1: ₹2,40,000 (Actual HRA)
  • Rule 2: ₹3,00,000 (50% of ₹6,00,000)
  • Rule 3: ₹1,20,000 (₹1,80,000 - ₹60,000)

HRA Exemption = ₹1,20,000 (lowest of the three)

Eligibility & Conditions

  • Old Tax Regime only - HRA exemption is NOT available in the New Tax Regime
  • You must be a salaried employee receiving HRA as part of your salary
  • You must be living in rented accommodation and actually paying rent
  • You cannot claim HRA if you live in your own house
  • If annual rent exceeds ₹1,00,000, you need rent receipts
  • If annual rent exceeds ₹1,00,000, you must provide landlord's PAN

Documents Required

  • Rent Receipts: Required if annual rent exceeds ₹1 lakh. Include landlord name, address, rent amount, and period
  • Rental Agreement: Proof of tenancy with landlord details
  • Landlord's PAN: Mandatory if annual rent exceeds ₹1 lakh
  • Form 12BB: Declaration form to be submitted to employer for claiming HRA

Frequently Asked Questions

Can I claim HRA in the New Tax Regime?
No, HRA exemption is NOT available in the New Tax Regime. You can only claim HRA exemption if you opt for the Old Tax Regime. In the New Regime, HRA is fully taxable.
How is HRA exemption calculated?
HRA exemption is the lowest of: (1) Actual HRA received, (2) 50% of salary for metro cities or 40% for non-metro, (3) Rent paid minus 10% of salary. Salary means Basic + DA.
Which cities are considered metro for HRA?
Only Delhi, Mumbai, Chennai, and Kolkata are metro cities for HRA (50% rule). All other cities including Bangalore, Hyderabad, Pune are non-metro (40% rule).
Can I claim HRA if I live with my parents?
Yes, if you pay rent to your parents and they declare it as income. Get rent receipts and a rental agreement. Parents must show this rental income in their ITR.
What if I don't receive HRA but pay rent?
You can claim deduction under Section 80GG up to ₹5,000/month (₹60,000/year) if you don't receive HRA and pay rent. Conditions apply.
Is rent receipt mandatory for HRA claim?
Rent receipts are mandatory if annual rent exceeds ₹1 lakh. You also need landlord's PAN if rent is above ₹1 lakh per year.
Can I claim both HRA and home loan benefits?
Yes, you can claim HRA for rented house and home loan interest (Section 24) for your own property if they are in different cities.
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