HRA Calculator

Calculate your exact House Rent Allowance exemption and find out your taxable HRA instantly.

Annual HRA Breakdown

Total HRA Received (Yearly)

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Total Rent Paid (Yearly)

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Exempted HRA (Tax-Free)

₹0

Taxable HRA

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How to Calculate House Rent Allowance (HRA) Exemption?

The House Rent Allowance (HRA) is a critical component of a salaried individual's pay structure in India. If you live in a rented accommodation, the Income Tax Act allows you to claim tax deductions on the HRA you receive under Section 10(13A). However, the entire HRA amount is not automatically tax-free.

Using our online HRA Calculator, you can figure out your precise HRA exemption calculation formula without any complex math. The exempt portion of your HRA is determined by finding the lowest of three specific conditions: the actual HRA received, the actual rent paid minus 10% of your basic salary, or 50% of your basic salary for Metro cities (40% for Non-metros). The remainder becomes your taxable HRA, which is added to your taxable income.

Frequently Asked Questions About HRA Exemption

What is the exact HRA exemption calculation formula?
The exemption is the lowest of these three amounts: 1) Actual HRA received from your employer. 2) Actual rent paid minus 10% of your Basic Salary + DA. 3) 50% of Basic Salary + DA (for Metro cities) OR 40% of Basic Salary + DA (for Non-Metro cities).
Which cities qualify as "Metro" for 50% HRA exemption?
Under the Income Tax laws of India, only four cities are considered Metros for the purpose of HRA calculation: Delhi, Mumbai, Kolkata, and Chennai. For any other city, including major IT hubs like Bangalore, Hyderabad, or Pune, the limit is strictly 40%.
Can I claim HRA if I live with my parents?
Yes! You can claim HRA even if you live in a house owned by your parents, provided you formally pay them rent and they declare this rent as their income while filing their own income tax returns. You cannot claim HRA if you live in your own house.

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