Calculator
HRA Calculator
Calculate your HRA (House Rent Allowance) exemption under the old tax regime. Find out how much of your HRA is tax-free and how much is taxable.
₹
₹10,000₹5,00,000
₹
₹0₹2,00,000
₹
₹0₹2,00,000
₹
₹0₹2,00,000
HRA Exemption (Annual)
₹1.56 L
₹13,000/month tax-free
Taxable HRA (Annual)
₹84,000
₹7,000/month added to taxable income
Estimated Tax Saved
₹31,200
Approximate savings at 20% tax slab
Three HRA Rules (Annual)
1. Actual HRA received₹2,40,000
2. Rent - 10% of (Basic+DA)₹1,56,000
3. 50% of (Basic+DA)₹3,00,000
Exemption = lowest of the three = Rent - 10% of salary
What is HRA Exemption?
HRA (House Rent Allowance) is a component of your salary meant to cover rental expenses. Under Section 10(13A) of the Income Tax Act, part of your HRA is exempt from tax if you live in a rented accommodation. This exemption is only available under the old tax regime.
The Three HRA Rules
Your HRA exemption is the minimum of these three amounts:
- Actual HRA received from your employer
- Rent paid minus 10% of (Basic Salary + DA)
- 50% of (Basic + DA) if you live in Mumbai, Delhi, Chennai, or Kolkata; 40% for all other cities
Important Points
- HRA exemption is not available under the new tax regime
- You need rent receipts as proof for claiming HRA
- If rent exceeds ₹1 lakh/year, landlord PAN is mandatory
- You cannot claim HRA if you live in your own house
- If you pay rent but do not receive HRA, you can claim deduction under Section 80GG