HRA Exemption Calculator (India)

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HRA Received₹0
(-) HRA Exemption₹0
(=) Taxable HRA Amount₹0

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Understanding HRA Exemption

House Rent Allowance (HRA) is a common component of salary provided by employers to employees to meet the cost of renting accommodation. Under Section 10(13A) of the Income Tax Act, employees can claim tax exemption on the HRA received, subject to certain conditions and limits. You must be paying rent for the accommodation you occupy to claim this exemption.

How HRA Exemption is Calculated

The amount of HRA exemption you can claim is the **minimum** of the following three amounts:

  1. Actual HRA received from the employer.
  2. Actual rent paid minus 10% of 'Salary'.
  3. 50% of 'Salary' if you live in a Metro city (Delhi, Mumbai, Chennai, Kolkata), OR
    40% of 'Salary' if you live in a Non-Metro city.

For HRA calculation purposes, 'Salary' means Basic Salary + Dearness Allowance (DA), if DA forms part of retirement benefit terms. If DA is not applicable or not part of retirement terms, only Basic Salary is considered.

The amount calculated as the minimum of the above three is the exempt portion of your HRA. Any HRA received above this exempt amount is considered Taxable HRA and is added to your gross income for tax calculation.

Disclaimer: This calculator provides an estimate based on the details entered. Tax laws and interpretations can change. It assumes DA forms part of retirement benefits if provided. You must actually be paying rent and retain proof (rent receipts) to claim HRA exemption. Consult a tax professional for accurate calculations and advice specific to your situation.