HRA Calculator
Compute your HRA exemption based on basic salary, rent paid, and city of residence.
Inputs
HRA exemption
This amount is exempt from your taxable salary under the old regime.
Three legs of the calculation
The exemption is the minimum of these three figures. Anything above it is added back to your taxable income.
Taxable HRA
House Rent Allowance is a salary component paid by employers to help meet rental costs. Under the old tax regime, a portion of HRA is exempt from tax, subject to three conditions. The exemption applies only if you actually pay rent, the home is not owned by you, and you are not the landlord.
How exemption is calculated
Section 10(13A) limits the exemption to the lowest of three figures, the actual HRA received from your employer, the excess of annual rent paid over 10 percent of annual basic salary plus dearness allowance, and 50 percent of basic if you live in a metro city or 40 percent if you live in a non metro.
The metro list includes Delhi, Mumbai, Kolkata, and Chennai. Bengaluru, Hyderabad, Pune, Ahmedabad, and other cities count as non metro for HRA purposes.
Worked example
Suppose your annual basic is ₹6,00,000, HRA received is ₹3,00,000, and you pay ₹30,000 monthly rent in Mumbai. Rent paid for the year is ₹3,60,000. Rent minus 10 percent of basic is ₹3,00,000. Fifty percent of basic is also ₹3,00,000. The lowest of the three is ₹3,00,000, so your full HRA is exempt and the taxable portion is zero.
Documents you need
Keep monthly rent receipts and a copy of your rental agreement. If your annual rent crosses ₹1 Lakh, you must also report your landlord's PAN to your employer. Without this, your employer cannot grant the exemption while computing TDS.
Frequently asked questions
No. Most exemptions, including HRA, are not available under the new tax regime. If HRA is a meaningful component of your salary and you actually pay rent, the old regime may still work out cheaper for you.
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