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HRA Calculator

Calculate HRA tax exemption under Section 10(13A). See which of the 3 conditions gives you maximum HRA benefit.

Metro: Delhi, Mumbai, Kolkata, Chennai
Annual HRA Exemption
₹2,40,000
(₹20,000/month)
Taxable HRA
₹0
Tax Saved (@ 30%)
₹72,000
Exemption = Minimum of
(a) Actual HRA received ₹2,40,000
(b) 50% of Basic Salary ₹3,00,000
(c) Rent paid − 10% of Basic ₹2,40,000
Limiting factor: Actual HRA

Frequently Asked Questions

What is HRA exemption?

HRA exemption reduces your taxable income if you live in a rented accommodation and receive HRA as part of your salary. It is available only under the old tax regime.

How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), (3) Rent paid minus 10% of basic salary.

Which cities are considered metro for HRA?

Only Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities for HRA calculation. All other cities get the 40% basic salary limit instead of 50%.

Can I claim HRA if I pay rent to family?

Yes, you can pay rent to parents and claim HRA exemption, provided you have a valid rent agreement and the parent includes the rental income in their tax return. You cannot claim HRA for rent paid to your spouse.

What if I don't receive HRA in my salary?

If you don't receive HRA but pay rent, you can claim deduction under Section 80GG up to ₹5,000/month (₹60,000/year), subject to conditions like not owning a house in the same city.