HRA Exemption Calculator
Calculate your eligible House Rent Allowance (HRA) tax exemption under Indian Income Tax Act Sec 10(13A).
Calculation Breakdown
Calculation Formula & Methodology
Under Sec 10(13A) of Income Tax Act, HRA exemption is calculated as the lowest of three conditions based on rent paid and basic salary.
What is HRA Exemption?
HRA (House Rent Allowance) is a component of salary provided by employers to cover rental accommodation costs. Employees paying rent can claim tax exemption on HRA under the Old Tax Regime.
Calculation Rules for HRA Exemption
The exempt amount is the MINIMUM of: 1) Actual HRA received from employer, 2) 50% of Basic salary for metro cities or 40% for non-metro, 3) Actual Rent paid minus 10% of annual basic salary.
Example HRA Exemption
Monthly Basic ₹40,000, HRA ₹16,000, Rent Paid ₹18,000 in Mumbai (Metro):
Out of ₹1.92L HRA received, ₹1.68L is tax-free and ₹24,000 is taxable.
Important HRA Requirements
Rent Receipts & PAN
Rent Receipts and landlord PAN mandatory if annual rent exceeds ₹1,00,000.
Tax Regime Choice
HRA exemption is available ONLY under the Old Tax Regime.
Frequently Asked Questions
Yes, providing your landlord's PAN is compulsory if rent exceeds ₹1,00,000 per financial year.
Related Calculators
In-Hand Salary Calculator India
Calculate your estimated monthly and yearly in-hand take-home salary based on your CTC, salary structure, PF, professional tax, and deductions.
CTC Calculator – Cost to Company Breakdown
Break down your Annual CTC into Monthly CTC, Basic Salary, HRA, Allowances, PF, and estimated take-home pay.
EPF Calculator – Employee Provident Fund
Calculate monthly EPF contributions, employer share, interest accumulation, and estimated retirement corpus.
Gratuity Calculator India
Calculate estimated gratuity payout based on last drawn basic salary and completed years of service.
Related ComplianceDraft Tools & Generators
Convert your calculations into ready-to-use compliance drafts & official legal documents.