HRA Exemption Calculator
Calculate tax-free HRA for salaried individuals under Section 10(13A)
Salary Details (Monthly)
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Monthly basic salary
%
% of basic salary (enter 0 if not applicable)
₹
HRA component in your salary
₹
Actual rent you pay per month
Metro: Delhi, Mumbai, Kolkata, Chennai
Salary for HRA: Basic + DA = ₹50,000
HRA Tax Exemption
₹10,000/month
Taxable HRA
₹10,000
Tax Saved (30%)
₹3,000
How It's Calculated
HRA exemption is the minimum of these three:
1. Actual HRA Received
₹20,000
2. Rent - 10% of Salary
✓ Minimum (Applied)
₹10,000
3. 50% of Salary
₹25,000
Final HRA Exemption₹10,000
Annual Summary
Annual HRA Received₹2,40,000
Annual Rent Paid₹1,80,000
HRA Exemption₹1,20,000
Taxable HRA₹1,20,000
Estimated Tax Savings (30% slab)₹36,000
Assuming you're in 30% tax bracket
Effective Rent After Tax Benefit
Monthly Rent Paid₹15,000
Tax Savings (30% of exemption)- ₹3,000
Effective Monthly Rent₹12,000
Understanding HRA Exemption
HRA (House Rent Allowance) is a component of your salary meant to cover rental expenses. Section 10(13A) of the Income Tax Act allows partial tax exemption on HRA.
The exemption is calculated as the minimum of three components:
- • Actual HRA received from employer
- • Rent paid minus 10% of salary (Basic + DA)
- • 50% of salary for metro cities, 40% for non-metro
Metro cities: Delhi, Mumbai, Kolkata, Chennai. All other cities are non-metro.
Important Requirements
- •You must be living in a rented accommodation (not own house)
- •You must actually pay rent to claim exemption
- •If annual rent exceeds ₹1 lakh, provide landlord's PAN
- •Keep rent receipts and rental agreement as proof
- •If staying in parents' house, you can pay them rent
- •Balance HRA (after exemption) is added to taxable income