HRA Exemption Calculator
Maximize your tax savings under Section 10(13A) of the Old Tax Regime. Calculate the tax-exempt portion of your House Rent Allowance instantly.
Calculate Your House Rent Allowance Exemption
Note: HRA exemption is only claimable under the Old Tax Regime. Metro cities include Delhi, Mumbai, Kolkata, and Chennai.
HRA Exemption Rule Breakdown (The "Minimum of Three" Rule)
The maximum HRA amount exempt from tax is the least of the following three conditions (computed on a monthly basis):
- HRA Received: The actual amount of House Rent Allowance received from your employer.
- Rent Paid − 10% of Salary: Actual rent paid minus 10% of your Basic Salary + DA.
- Statutory Percentage:
- 50% of (Basic Salary + DA) if living in a Metro City (Delhi, Mumbai, Kolkata, Chennai).
- 40% of (Basic Salary + DA) if living in a Non-Metro City.
What is HRA & Who Can Claim It?
House Rent Allowance (HRA) is an allowance paid by employers to salaried employees to cover the cost of renting accommodation. It is a partially tax-exempt component of your salary under Section 10(13A) of the Income Tax Act, 1961.
To claim HRA exemption, you must:
- Be a salaried employee receiving HRA as part of your CTC.
- Actually pay rent and live in rented accommodation (not in your own house).
- Opt for the Old Tax Regime at the time of filing ITR.
- Submit rent receipts (and landlord's PAN if annual rent exceeds ₹1 lakh) to your employer.
Self-employed individuals cannot claim HRA but may claim deduction under Section 80GG for rent paid, subject to certain limits.
HRA Calculation Example
Suppose Rahul works in Bengaluru (non-metro) with the following monthly figures:
| Component | Amount (₹/month) |
|---|---|
| Basic Salary + DA | 50,000 |
| HRA Received | 20,000 |
| Rent Paid | 15,000 |
| Condition 1: HRA Received | 20,000 |
| Condition 2: Rent − 10% of Basic (15,000 − 5,000) | 10,000 |
| Condition 3: 40% of Basic (Non-Metro) | 20,000 |
| HRA Exemption (Minimum of three) | 10,000 |
| Taxable HRA (20,000 − 10,000) | 10,000 |
Tips to Maximize HRA Benefit
- If you live in a metro, opt for accommodation that lets you claim the full 50% slab.
- Keep proper rent receipts and a registered rent agreement for any monthly rent above ₹3,000.
- Provide your landlord's PAN to your employer if annual rent crosses ₹1 lakh.
- You can claim both HRA and home loan benefits simultaneously if you rent in a different city than where you own a house.
- Pay rent through bank transfer — cash payments may not stand scrutiny.
- If your employer does not pay HRA, claim Section 80GG (up to ₹60,000/year) instead.