HRA Exemption Calculator

Calculate your House Rent Allowance (HRA) tax exemption instantly. Find out how much HRA is exempt from income tax and plan your taxes better.

Understanding HRA Exemption

House Rent Allowance (HRA) is a component of salary that helps employees meet their accommodation expenses. The Income Tax Act provides partial or complete tax exemption on HRA, making it a valuable tax-saving tool for salaried individuals.

Calculation Rules

  • Actual HRA received The HRA component in your salary
  • Excess rent over 10% of salary Rent paid minus 10% of basic salary
  • 50% or 40% of salary Based on metro or non-metro city

Metro vs Non-Metro

  • Metro Cities: Delhi, Mumbai, Chennai, Kolkata - 50% exemption
  • Non-Metro Cities: All other cities - 40% exemption

Important Notes

  • • You must be staying in a rented accommodation to claim HRA exemption
  • • Rent receipts are required as proof for claiming exemption
  • • If rent exceeds ₹1 lakh annually, landlord's PAN is mandatory
  • • HRA and home loan interest can be claimed simultaneously

Key Features

  • Instant HRA exemption calculation
  • Metro vs Non-metro comparison
  • Detailed calculation breakdown
  • Tax planning insights

Important Note

This calculator provides estimates based on current income tax rules. Actual exemption may vary based on:

  • • Actual rent paid vs HRA received
  • • City of residence classification
  • • Other salary components
  • • Changes in tax laws

Disclaimer: This calculator provides approximate calculations based on the information provided. The actual HRA exemption may vary based on various factors including changes in income tax rules, actual rent paid, and other components of salary. For precise calculations, please consult with a tax advisor.