Back to calculators
HRA Calculator
Calculate your House Rent Allowance exemption
₹
₹
₹
City Type
HRA Exemption
₹7,000 /month
Yearly: ₹84,000
Taxable HRA
₹8,000
Total HRA
₹15,000
HRA Breakup
Exempt: 46.7% Taxable: 53.3%
Understanding HRA
House Rent Allowance (HRA) is a component of salary provided by employers to help employees meet their rental expenses. The Income Tax Act allows exemption on HRA subject to certain conditions.
HRA Exemption Rules:
- For metro cities: 50% of basic salary
- For non-metro cities: 40% of basic salary
- Actual HRA received from employer
- Rent paid minus 10% of basic salary
- The least of the above three is exempt from tax
Metro Cities Include:
- Delhi NCR (Delhi, Noida, Gurgaon, etc.)
- Mumbai (including Navi Mumbai)
- Chennai
- Kolkata
- Hyderabad
- Bangalore
Example Calculation:
For a metro city with:
- Basic Salary: ₹50,000/month
- HRA Received: ₹25,000/month
- Rent Paid: ₹30,000/month
- Exemption: ₹25,000/month
Important Note:
To claim HRA exemption, you must have rent receipts and your landlord's PAN if the annual rent exceeds ₹1 lakh. The exemption is not available if you live in your own house or don't pay rent.