HRA Exemption Calculator
Calculate House Rent Allowance exemption as per Indian tax rules
Monthly HRA exemption
₹8,000
- Basic + DA
- ₹40,000
- Actual HRA received
- ₹15,000
- 50% of basic + DA
- ₹20,000
- Rent paid − 10% of basic + DA
- ₹8,000
- Monthly HRA exemption
- ₹8,000
- Monthly taxable HRA
- ₹7,000
- Annual HRA exemption
- ₹96,000
- Annual taxable HRA
- ₹84,000
What this calculator does
HRA is a salary component that provides tax exemption for rent paid. Calculate your eligible exemption under Section 10(13A) of the Income Tax Act.
How it is calculated
\text{Exemption} = \text{Minimum of: } \begin{cases} \text{Actual HRA received} \\ 50\%/40\% \text{ of salary} \\ \text{Rent} - 10\% \text{ of salary} \end{cases}50% for metro cities (Delhi, Mumbai, Kolkata, Chennai), 40% for non-metro. Salary = Basic + DA + commission (fixed % of turnover).
Worked example
Metro city, Basic = ₹30,000, DA = ₹5,000, HRA = ₹12,000, Rent = ₹15,000
Salary = ₹35,000. Check: (1) ₹12,000, (2) 50% of ₹35,000 = ₹17,500, (3) ₹15,000 - ₹3,500 = ₹11,500
HRA exemption: ₹11,500 per month (minimum of the three)
- HRA exemption only available in old tax regime, not in new default regime
- Must actually pay rent to claim exemption
- Landlord's PAN mandatory if annual rent exceeds ₹1,00,000
- Need rent receipts, rental agreement for claiming exemption
- Metro cities: Delhi, Mumbai, Kolkata, Chennai (50%); all others (40%)
Tax and compliance notes
- Available only under old tax regime (Section 10(13A))
- Not available in new default tax regime effective AY 2024-25
- Submit rent receipts and Form 12BA to employer for exemption
- Can claim both HRA and home loan benefits if loan property is different from rented property
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