HRA Calculator
Calculate HRA exemption under Section 10(13A) of Income Tax Act. Find out how much of your HRA is tax-exempt.
Enter Salary Details
HRA Exemption
Applied Rule: Rent Paid - 10% of Basic
HRA Exemption Rules Comparison
Rule 1
Actual HRA Received
₹3.00 L
Per Year
Rule 2
50% of (Basic + DA)
₹3.00 L
Per Year
Rule 3
Rent - 10% of (Basic + DA)
₹1.80 L
Per Year
Detailed Breakdown
| Component | Monthly | Annual |
|---|---|---|
| Basic Salary | ₹50.00 K | ₹6.00 L |
| Dearness Allowance | ₹0 | ₹0 |
| HRA Received | ₹25.00 K | ₹3.00 L |
| Rent Paid | ₹20.00 K | ₹2.40 L |
| Exempt HRA | ₹15.00 K | ₹1.80 L |
| Taxable HRA | ₹10.00 K | ₹1.20 L |
Metro Cities
Delhi, Mumbai, Chennai, and Kolkata qualify as metro cities with 50% exemption rate.
Tax Benefit
HRA exemption reduces your taxable income, resulting in lower income tax liability.
Rent Receipts
Keep rent receipts as proof. PAN of landlord required if annual rent exceeds ₹1 lakh.
Frequently Asked Questions
Understanding HRA Exemption
House Rent Allowance (HRA) is a component of salary provided by employers to employees to meet rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as tax-exempt, reducing your overall tax liability.
Three Rules of HRA Exemption
- Rule 1: Actual HRA received from employer
- Rule 2: 50% of (Basic + DA) for metro cities, 40% for non-metro
- Rule 3: Rent paid minus 10% of (Basic + DA)
The minimum of these three values is allowed as HRA exemption. The remaining HRA (if any) is added to taxable income.
Important Points
- HRA exemption is available only to salaried employees receiving HRA
- You must actually pay rent to claim HRA exemption
- Rent receipts are required as proof if claiming exemption
- Landlord's PAN is mandatory if annual rent exceeds ₹1 lakh
- Self-employed individuals cannot claim HRA exemption