How to use the HRA Exemption Calculator
- Choose monthly or yearly amounts and your city type.
- Enter your basic salary, DA and HRA received.
- Enter the rent you pay — the exempt and taxable HRA appear instantly.
About this tool
Under Section 10(13A), the tax-free part of HRA is the least of three amounts: (1) the actual HRA received, (2) rent paid minus 10% of salary, and (3) 50% of salary if you live in Delhi, Mumbai, Kolkata or Chennai, or 40% anywhere else. Here “salary” means basic pay plus dearness allowance (if it counts for retirement benefits). The rest of the HRA is taxable.
Example: basic ₹50,000 a month, HRA ₹20,000, rent ₹18,000 in a metro → the three amounts are ₹20,000, ₹13,000 and ₹25,000, so ₹13,000 a month (₹1,56,000 a year) is exempt. HRA exemption is available only under the old tax regime. Keep rent receipts, and give your landlord’s PAN to your employer if the rent is above ₹1 lakh a year.
Frequently asked questions
Which cities are metros for HRA?
Only Delhi, Mumbai, Kolkata and Chennai get the 50% limit. Bengaluru, Hyderabad, Pune, Gurugram and all others use 40%.
Can I claim HRA in the new tax regime?
No. HRA exemption is allowed only if you choose the old regime.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent and they own the house; they must show the rent as their income. Keep a rent agreement and bank transfer records.
What if I don’t receive HRA but pay rent?
Self-employed people and employees without HRA may claim a deduction under Section 80GG in the old regime, subject to its own limits.