HRA Exemption Calculator
Salaried employees receiving House Rent Allowance (HRA) can claim a tax exemption on part of it under the old tax regime. This calculator applies the standard least-of-three rule.
Show solution steps
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Formula
Exempt HRA is the least of:
- Actual HRA received
- Rent paid minus 10% of basic salary
- 50% of basic salary (metro cities) or 40% (non-metro)
The remainder of your HRA (received minus exempt) is added back to your taxable salary.
Worked Examples
Example 1 u2014 Metro city
Basic ₹50,000, HRA ₹25,000, rent ₹20,000, metro: exempt = least of (25,000; 15,000; 25,000) = ₹15,000/month (₹1,80,000/year).
Example 2 u2014 Low rent limits the exemption
If rent is only ₹8,000/month, then rent − 10% of basic = 8,000 − 5,000 = ₹3,000 — the smallest of the three, so only ₹3,000/month is exempt despite receiving ₹25,000 HRA.
Definitions
- Basic Salary
- Your monthly basic pay (plus DA if applicable), the base for all three HRA limits.
- HRA Received
- The House Rent Allowance component in your monthly salary.
- Rent Paid
- The actual monthly rent you pay for your accommodation.
- City Type
- Metro cities (Delhi, Mumbai, Kolkata, Chennai) use a 50% of basic limit; all others use 40%.
How to Use
- Enter your monthly basic salary.
- Enter your monthly HRA received.
- Enter your monthly rent paid.
- Select whether you live in a metro city.
- Read your exempt and taxable HRA amounts, shown annually.
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