HRA Exemption
Free · Live calculation · Your data stays in your browser
Salary & Rent Details
All amounts are monthly
City Type
Metros: Delhi, Mumbai, Kolkata, Chennai
HRA Exemption (Annual)
₹2,40,000
₹20,000 per month tax-free
Tax-Free
₹2,40,000
Taxable HRA
₹0
Tax Saved
₹72,000
HRA Exemption = Least of These 3
Income Tax rule under Section 10(13A)
1. Actual HRA Received
₹20,000 × 12
₹2,40,000
2. Rent − 10% of Basic
(Rent × 12) − 10% × Basic
₹2,40,000
3. 50% of Basic
Metro city
₹3,00,000
Insight
You can claim ₹2,40,000/year as HRA exemption, saving up to ₹72,000 in tax (30% bracket).
Pro Tip
- •HRA exemption is only available under Old Tax Regime.
- •Submit rent receipts to your employer to claim HRA exemption.
- •If rent exceeds ₹1L per year, landlord PAN is mandatory.
- •You can claim HRA + home loan interest if property is in different city.
What is HRA Exemption?
HRA (House Rent Allowance) is a salary component given to employees who live in rented accommodation. Under Section 10(13A) of the Income Tax Act, you can claim a portion of your HRA as tax-exempt. The exemption is calculated as the LEAST of three values: actual HRA received, rent paid minus 10% of basic salary, or 50% (metro) / 40% (non-metro) of basic salary.
How to Use
- 1Enter your monthly basic salary
- 2Enter your monthly HRA received from employer
- 3Enter the actual rent you pay per month
- 4Select if you live in a metro or non-metro city
- 5The calculator shows the tax-exempt HRA amount instantly
Formula
HRA Exemption = LEAST of:
1. Actual HRA Received
2. Rent Paid − 10% of Basic Salary
3. 50% (metro) or 40% (non-metro) of Basic SalaryFrequently Asked Questions
Only 4 cities qualify as metro for HRA exemption: Delhi, Mumbai, Kolkata, and Chennai. All other cities including Bangalore, Hyderabad, Pune, Ahmedabad are considered non-metro (40% of basic).