What is HRA Calculator?
An HRA (House Rent Allowance) Calculator helps salaried employees calculate tax exemption on house rent paid under Section 10(13A) of Income Tax Act. HRA exemption is the minimum of - actual HRA received, 50% of salary (metro) or 40% (non-metro), or rent paid minus 10% of salary. Claiming HRA exemption can save ₹50,000-1,50,000 in taxes annually. Know your exact HRA tax benefit and reduce taxable income legally!
Formula
HRA Exemption = Minimum of:
1. Actual HRA received from employer
2. 50% of salary (metro cities) OR 40% of salary (non-metro)
3. Rent Paid - 10% of Basic Salary
Metro cities: Mumbai, Delhi, Kolkata, Chennai
Salary = Basic + DA
Benefits of Using HRA Calculator
Accurate HRA Exemption – Calculate exact tax-free HRA amount
Metro vs Non-Metro – Automatic 50%/40% calculation
Tax Saving Estimation – Know how much tax you save
Rent Receipt Planning – Decide optimal rent amount
Section 80GG Compatible – For self-employed/no HRA
Free & Updated – As per latest IT Act 2025-26 rules
Pro Tip: To maximize HRA exemption: Pay rent equal to 60% of Basic Salary (for metro). Example: ₹50K basic, pay ₹30K rent. You'll get full HRA exemption! Ensure landlord PAN if rent >₹1L/year. Keep rent receipts even if not submitted - needed during IT scrutiny!
Frequently Asked Questions
It's the MINIMUM of 3 amounts: (1) Actual HRA from salary slip, (2) 50% salary (metro) / 40% (non-metro), (3) Rent - 10% of salary. Example: ₹50K basic, ₹20K HRA, ₹15K rent, Metro. Exemption = Min(20K, 25K, 10K) = ₹10K/month.
Only 4 cities: Mumbai, Delhi, Kolkata, Chennai (50% exemption). ALL other cities including Bangalore, Pune, Hyderabad, Gurgaon are NON-METRO (40% exemption). Living in Bangalore? You get 40%, not 50%!
Yes! Perfectly legal. Parents must show it as rental income in their ITR. Benefits: (1) You get HRA exemption, (2) Parents get ₹2.4L tax-free under basic exemption if no other income. Win-win! Keep rent agreement + receipts.
Yes, if: (1) You live in a rented house (claim HRA), (2) Own a house in different city (claim ₹2L interest + ₹1.5L principal). You CANNOT claim both for the same property. Many people have setup in 2 cities!
You can still claim! HRA exemption considers rent paid, not HRA received. Example: HRA ₹10K, Rent ₹20K, Salary ₹50K (metro). Exemption = Min(10K, 25K, 15K) = ₹10K. You can claim extra ₹10K under Section 80GG if eligible!
Yes, if annual rent >₹1,00,000 (₹8,334/month). Submit landlord PAN to employer for HRA. If landlord refuses, deduct TDS @ 5% and give TDS certificate. For rent <₹1L/year, PAN not needed!