HRA Calculator
Results
Least of the Following:
1. Actual HRA Received: ₹20,000
2. Rent Paid - 10% of Basic: ₹20,000
3. 50%/40% of Basic: ₹25,000
HRA Exemption (Monthly)
₹20,000
HRA Exemption (Yearly)
₹2,40,000
Taxable HRA (Monthly)
₹0
HRA Breakup
Other Tax Calculators
HRA Exemption Rules
HRA exemption is calculated as the least of the following:
- 1. Actual HRA received from employer
- 2. Rent paid minus 10% of basic salary
- 3. 50% of basic salary for metro cities OR 40% of basic salary for non-metro cities
Understanding HRA
House Rent Allowance (HRA) is a component of salary provided by employers to help employees meet their rental expenses. The tax exemption on HRA helps reduce the taxable income of employees who live in rented accommodation.
Basic Salary
Core component for HRA calculation
City Type
Affects exemption percentage
Rent Paid
Actual rent determines exemption
How to Use This Calculator
- Enter your monthly basic salary
- Input HRA received from employer
- Enter monthly rent paid
- Select your city type (Metro/Non-Metro)
- Click Calculate to see your HRA exemption
Documents Required for HRA Claim
- Rent receipts
- Rental agreement
- Landlord's PAN (if rent > ₹1 lakh per year)
- Salary slips showing HRA component
Frequently Asked Questions
What is HRA?
House Rent Allowance (HRA) is a component of salary structure that employers provide to employees to meet their rental expenses. It's partially exempt from income tax under Section 10(13A).
Which cities are considered Metro cities?
Delhi NCR, Mumbai, Kolkata, and Chennai are considered Metro cities for HRA calculation. The HRA exemption limit is 50% of basic salary for these cities compared to 40% for non-metro cities.
Can I claim HRA if living with parents?
You cannot claim HRA exemption if you live in your own house or in a house owned by your parents. HRA exemption is only available when you actually pay rent for accommodation.
Is PAN of landlord mandatory?
PAN of landlord is mandatory if the annual rent exceeds ₹1 lakh. For rent below this amount, PAN is not mandatory but rent receipts and rental agreement should be maintained.
What if I don't receive HRA?
If you don't receive HRA but pay rent, you can claim deduction under Section 80GG of the Income Tax Act, subject to certain conditions and limits.