How is HRA exemption calculated?

Minimum of: (1) Actual HRA received, (2) 50% of basic (metro) or 40% (non-metro), (3) Rent paid minus 10% of basic salary. The minimum amount is exempt from tax.

What is metro city for HRA calculation?

Metro cities: Delhi, Mumbai, Kolkata, Chennai. Exemption is 50% of basic salary. Non-metro cities get 40% of basic. City classification affects HRA exemption amount.

What salary components are considered for HRA?

Basic salary only. Allowances, bonuses, and special pays are excluded. Dearness Allowance (DA) is included only for government employees. Private sector uses basic salary alone.

Can I claim HRA if living in own house?

No, HRA exemption requires actual rent payment with rent receipt. Living in own house or parents house without paying rent does not qualify for HRA tax benefit.

What documents are needed for HRA claim?

Rent receipts, landlord PAN (if rent >₹1L/year), rent agreement. Employer needs proof to grant exemption. Keep receipts for entire financial year for tax filing.

HRA Calculator

Calculate House Rent Allowance exemption under Section 10(13A)

HRA Calculator

Calculate House Rent Allowance (HRA) tax exemption under Section 10(13A). Find out how much HRA is exempt and taxable.

Monthly Basic Salary*

Basic salary component only

Monthly HRA Received*

HRA received from employer monthly

Monthly Rent Paid*

Actual rent paid per month

Metro City (Delhi, Mumbai, Kolkata, Chennai)

50% exemption for metro, 40% for non-metro

HRA Exemption Rules

HRA exemption is calculated as the minimum of three amounts:

Actual HRA received from employer
50% of basic salary (metro) or 40% (non-metro)
Rent paid minus 10% of basic salary

The remaining HRA after exemption is added to your taxable income. Keep rent receipts and landlord PAN if annual rent exceeds ₹1 lakh.

Frequently Asked Questions

Everything you need to know about this tool