HRA Calculator
Calculate your HRA tax exemption and see which of the 3 conditions gives you the maximum benefit.
HRA Exempted
₹10,000
Taxable HRA
₹10,000
HRA Exemption = Minimum of:
What is HRA?
House Rent Allowance (HRA) is a component of salary paid by employers to employees who live in rented accommodation. HRA is partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act, provided you actually pay rent for your residence. HRA exemption is only available under the old tax regime.
3 Conditions for HRA Exemption
The HRA exemption is the minimum of the following three amounts:
- Actual HRA received from your employer
- 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% of basic salary for non-metro cities
- Actual rent paid minus 10% of basic salary
The remaining HRA (total HRA minus exempt amount) is added to your taxable income.
Metro vs Non-Metro Cities
For HRA calculation, only 4 cities are classified as metro: Delhi, Mumbai, Kolkata, and Chennai. All other cities — including Bangalore, Hyderabad, Pune, and Ahmedabad — are treated as non-metro. The metro classification gives you a higher exemption (50% of basic vs 40%) under the second condition.
FAQ: Can I claim HRA without rent receipts?
If your annual rent exceeds ₹1 lakh, you must provide your landlord's PAN number to claim HRA exemption. Rent receipts are mandatory for claiming HRA if the rent exceeds ₹3,000/month. For rent up to ₹3,000/month, a self-declaration may suffice. Always keep rent receipts, bank transfer records, and the rental agreement as proof — the tax department can ask for these during assessment.
FAQ: Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA exemption by paying rent to your parents, provided the house is owned by them and you have a genuine rental agreement. The rent you pay will be added to your parent's income. This is a legitimate tax-saving strategy — your parent may pay little or no tax on this rental income if they are in a lower tax bracket or are senior citizens.
FAQ: Can I claim both HRA and home loan benefits?
Yes, you can claim both HRA exemption and home loan tax benefits simultaneously if you own a house in one city and live on rent in another city for work. You can also claim both if you live on rent and have a house that is rented out or under construction. However, you cannot claim HRA if you live in your own house.