HRA Calculator - House Rent Allowance

Calculate your tax-exempt HRA based on salary, rent paid, and city type (Metro/Non-Metro).

Salary & HRA Details

₹10,000₹5,00,000
₹0₹3,00,000
₹0₹2,00,000
Metro: Delhi, Mumbai, Kolkata, Chennai

Tax Benefit

HRA exemption reduces your taxable income

For Tenants

Available only if you live in rented accommodation

HRA Tax Exemption

Tax-Exempt HRA (Monthly) ₹10,000
Taxable HRA (Monthly) ₹15,000
Annual Tax Savings ₹37,200

Calculation Breakdown

Component Monthly Annual
Basic Salary ₹50,000 ₹6,00,000
HRA Received ₹25,000 ₹3,00,000
Rent Paid ₹15,000 ₹1,80,000
Actual HRA ₹25,000 ₹3,00,000
50%/40% of Basic ₹25,000 ₹3,00,000
Rent - 10% Basic ₹10,000 ₹1,20,000
Exempt HRA (Minimum) ₹10,000 ₹1,20,000
Taxable HRA ₹15,000 ₹1,80,000

About HRA (House Rent Allowance)

What is HRA?

HRA (House Rent Allowance) is a component of salary paid by employers to employees for accommodation expenses. A part of HRA is tax-exempt under Section 10(13A) of the Income Tax Act.

HRA Exemption Formula

Exempt HRA is the MINIMUM of:

1. Actual HRA received
2. 50% of Basic (Metro) or 40% (Non-Metro)
3. Rent Paid - 10% of Basic Salary

Metro vs Non-Metro

  • Metro Cities: Delhi, Mumbai, Kolkata, Chennai (50% exemption)
  • Non-Metro: All other cities (40% exemption)
  • City classification as per IT Act provisions

Documents Required

  • Rent receipts from landlord
  • Rental agreement copy
  • Landlord's PAN (if rent > ₹1 lakh/year)
  • Submit to employer at start/end of FY

Important Points

  • Not available if you own the house you live in
  • Basic salary = Basic + DA (if DA forms part of retirement benefits)
  • If no HRA component, claim ₹60,000 under Section 80GG
  • Excess HRA is fully taxable

Tax Planning Tips

  • Negotiate higher HRA component in CTC
  • Keep rent receipts organized
  • Declare HRA exemption to employer to reduce TDS
  • Parents can be landlords (genuine transaction needed)