HRA Calculator

Calculate how much of your House Rent Allowance is tax-exempt and how much is taxable.

What is the HRA Calculator?

HRA is a salary component for rent. Under Section 10(13A), part of it is exempt from tax in the old regime if you live in a rented home.

How does it work?

The exemption is the lowest of: actual HRA received; rent paid minus 10% of basic + DA; and 50% of basic + DA in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere).

Formula

Exempt HRA = min(HRA, Rent − 10% × Salary, 50%/40% × Salary)

Example

Basic ₹50,000, HRA ₹20,000 and rent ₹18,000 in a metro: limits are ₹20,000, ₹13,000 and ₹25,000, so ₹13,000 a month is exempt and ₹7,000 is taxable.

Frequently asked questions

Can I claim HRA in the new regime?

No. HRA exemption is available only under the old regime.

Can I pay rent to my parents?

Yes, if they own the property and declare the rent as income. Keep a rental agreement and bank transfers as proof.

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