Hra Calculator
hra exemption calculator. Get instant, accurate results. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor
Hra Calculator
Calculator
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Formula: HRA Exemption = MIN(Actual HRA, 50%/40% of Basic, Rent - 10% of Basic)
Worked example — ₹11,000/mo HRA exempt
Formula
HRA Exemption = MIN(Actual HRA, 50%/40% of Basic, Rent - 10% of Basic)
HRA exemption under Section 10(13A) is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro, (3) Rent paid minus 10% of basic salary.
Worked Examples
Example 1: ₹40K basic, ₹15K rent
Problem:Basic ₹40,000, HRA ₹20,000, Rent ₹15,000, metro
Solution:Min(20,000; 20,000; 15,000-4,000=11,000) = ₹11,000
Result:₹11,000/mo HRA exempt
Frequently Asked Questions
Which cities are metro for HRA?
For HRA calculation, metro cities are Delhi, Mumbai, Chennai, and Kolkata. All other cities get the 40% rate. This classification has not been updated to include Bangalore, Hyderabad, etc.
Can I claim HRA if I own a home?
Yes, you can claim HRA even if you own a home in a different city or have a home loan. You can claim both HRA and home loan interest deduction simultaneously under the old tax regime.
What documents do I need to claim HRA exemption?
You need rent receipts (or rental agreement) and your landlord's PAN if annual rent exceeds 1 lakh. Salary slips showing HRA component and Form 12BB declaration to your employer are also required. Keep rent payment proofs like bank transfers for verification.
Is HRA exemption available under the new tax regime?
No. HRA exemption under Section 10(13A) is not available under the new tax regime introduced in Budget 2020. If you pay significant rent, the old regime with HRA exemption may save more tax than the lower slab rates of the new regime.
What happens if I pay rent to my parents?
You can claim HRA exemption by paying rent to your parents, provided they declare the rental income in their tax return. You cannot claim HRA for rent paid to your spouse. Ensure rent is paid via bank transfer and proper rent receipts are maintained.
How is HRA taxed if I do not pay any rent?
If you do not pay rent, the entire HRA received from your employer is fully taxable. The exemption formula requires actual rent paid to exceed 10% of basic salary for any benefit. Living in your own house or rent-free accommodation means zero HRA exemption.
Can I claim both HRA and home loan deduction?
Yes, under the old tax regime you can claim HRA exemption for rent paid in one city and home loan interest deduction under Section 24(b) for a property in another city. Both can also apply in the same city if you live in a rented house while your owned property is rented out or vacant.
What is the 10% of basic salary rule in HRA?
The HRA exemption formula subtracts 10% of your basic salary from actual rent paid. If your monthly rent is less than or equal to 10% of basic salary, this component becomes zero and effectively no HRA exemption is available from this leg of the calculation.
What is the HRA exemption formula under Section 10(13A)?
HRA exemption under Section 10(13A) is the lowest of: actual HRA received, 50% of basic salary for metro cities (40% for non-metro), or actual rent paid minus 10% of basic salary. Only the exempt portion is excluded from taxable income. Provide the landlord's PAN if annual rent exceeds ₹1 lakh. HRA cannot be claimed under the new tax regime.
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor · Editorial policy
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