OnlineToolsKitPro.in Your All-in-One Toolkit

HRA Exemption Calculator

Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) of Income Tax Act. Maximize your tax savings by accurately calculating HRA exemption based on salary structure and rent paid.

Section 10(13A) - Income Tax Act
Available Only in Old Tax Regime
AdSense Banner

HRA Calculation Parameters

HRA Eligibility Criteria
Must be a salaried employee receiving HRA component
Must be living in rented accommodation
Available only under Old Tax Regime
₹
₹6,00,000
Basic salary + Dearness Allowance (if applicable)
₹
₹2,40,000
₹
₹3,00,000
Metro City
Non-Metro
Metro cities: Delhi, Mumbai, Chennai, Kolkata. 50% of basic for metro, 40% for non-metro
HRA Calculation Steps
1
Actual HRA Received
₹2,40,000
2
50% of Basic Salary
₹3,00,000
3
Rent - 10% of Basic
₹2,40,000
₹1,20,000
Estimated Annual HRA Exemption

HRA Exemption Results

₹1,20,000
Total HRA Exemption
₹1,20,000
Tax Exempt Amount
₹1,20,000
Taxable HRA
₹37,200
Annual Tax Saving
₹3,100
Monthly Tax Saving

Monthly Breakdown

₹20,000
HRA Received
₹10,000
Monthly Exemption
₹10,000
Taxable HRA
Significant Saving
HRA Exemption Recommended
You save ₹37,200 annually by claiming HRA exemption
AdSense Banner

HRA Exemption Calculation Breakdown

Calculation MethodDescriptionAmountResult
Method 1Actual HRA ReceivedActual HRA₹240,000
Method 250% of Basic Salary (Metro)50% × ₹600,000₹300,000
Method 3Rent Paid - 10% of Basic₹300,000 - ₹60,000₹240,000
Final ExemptionMinimum of above three methodsMinimum of three values<strong>₹240,000</strong>
Calculation Method Description Amount Result
Method 1 Actual HRA Received ₹2,40,000 ₹2,40,000
Method 2 50% of Basic Salary (Metro) 50% × ₹6,00,000 ₹3,00,000
Method 3 Rent Paid - 10% of Basic ₹3,00,000 - ₹60,000 ₹2,40,000
Final Exemption Minimum of above three Minimum(₹2,40,000, ₹3,00,000, ₹2,40,000) ₹2,40,000

HRA Rules for Different Cities

City Type Percentage of Basic Example Calculation Metro Cities Best For
Metro Cities 50% of Basic Salary 50% × ₹6,00,000 = ₹3,00,000 Delhi, Mumbai, Chennai, Kolkata Higher exemption limit
Non-Metro Cities 40% of Basic Salary 40% × ₹6,00,000 = ₹2,40,000 All other cities Standard exemption

Important HRA Exemption Rules & Conditions

  • Three Calculation Methods: HRA exemption is minimum of: Actual HRA received, 50% of basic (metro)/40% (non-metro), or Rent paid minus 10% of basic salary
  • Metro Cities: Delhi, Mumbai, Chennai, Kolkata qualify for 50% of basic salary calculation
  • Rent Receipts: Must maintain rent receipts and landlord PAN if annual rent exceeds ₹1,00,000
  • Own House: Cannot claim HRA if you live in your own house or don't pay rent
  • Family Members: Can pay rent to parents/spouse but must have genuine rental arrangement
  • Tax Regime: HRA exemption available only under Old Tax Regime, not in New Tax Regime

Maximum Exemption

Calculate the exact HRA exemption you're eligible for based on the three calculation methods.

Document Guidance

Understand what rent receipts and documents you need to maintain for tax filing.

City-wise Calculation

Different calculations for metro (50%) and non-metro (40%) cities as per tax rules.

Tax Savings

See exactly how much tax you can save annually by claiming HRA exemption.

AdSense Banner