HRA Exemption Calculator
Enter monthly basic salary, HRA received, rent paid, and whether you are in a metro (50% rule) or non-metro (40%). We show the three statutory components and the exempt amount — illustrative only.
Inputs (monthly)
Results
HRA exempt per month (estimated)
① Actual HRA received₹0
② 50% of basic salary₹0
③ Rent paid − 10% of basic₹0
Exemption = minimum of ①, ②, and ③ (if positive).
HRA exemption rules (overview)
House Rent Allowance is a salary component many employers offer. Under the old tax regime, a portion can be exempt from tax if you pay rent for residential accommodation — subject to the least of three amounts each month: (1) actual HRA received; (2) 50% of basic salary if you live in specified metros (commonly Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere; and (3) rent paid minus 10% of basic salary. This calculator implements that textbook structure on monthly inputs.
New tax regime note: many deductions available in the old regime (including HRA-style exemptions) may not apply in the same way under the new concessional slabs. Always reconcile with Form 16, your payroll team, and a chartered accountant before filing — this page is not legal advice.
Documents: Employers often ask for rent receipts, rental agreements, and landlord PAN when annual rent exceeds ₹1,00,000. Keep proofs aligned with actual bank transfers where possible. Fake receipts carry serious consequences.
Common mistakes: Claiming HRA while not paying rent, mismatch between declared rent and cash flows, or forgetting that the exemption uses basic salary only (not gross). Also remember: if you live in a self-owned house or with parents without genuine rent, HRA exemption generally does not apply — paying rent to parents is allowed only if it is a bona fide arrangement with documentation and the parent includes it in income if required.
Plug the monthly exempt figure into our income tax calculator alongside other old-regime deductions to see directional tax impact — still verify with professional advice.
Plan taxes holistically
Use official AIS/Form 26AS and a CA for filing — tools here are educational.
FAQ
Why is component ③ negative?
If rent is less than 10% of basic, that component clamps to zero — exemption may be limited by other components.
Do I use basic or gross?
Rule uses basic salary; some payrolls split differently — follow your payslip definition.