Salary Tax
HRA exemption calculator India
Calculate tax-free House Rent Allowance for salaried employees using the official rent, salary, and metro/non-metro rule.
Calculator
How much HRA is tax exempt?
Formula
Official HRA exemption rule
For eligible salaried employees, HRA exemption is the least of three values: actual HRA received, rent paid minus 10% of salary, and 50% of salary for Delhi, Mumbai, Kolkata, or Chennai, otherwise 40%.
HRA exemption = min(actual HRA, rent paid - 10% salary, 40% or 50% of salary)
FAQ
Who can claim HRA exemption?
A salaried employee who receives HRA and pays rent for residential accommodation can usually claim HRA exemption, subject to conditions.
What salary is used for HRA calculation?
Salary generally means basic salary plus dearness allowance if it forms part of retirement benefits, plus eligible commission if applicable.
Which cities get the 50% rule?
Delhi, Mumbai, Kolkata, and Chennai use 50% of salary. Other cities generally use 40% of salary for the HRA exemption rule.
Can I claim HRA without rent payment?
No. HRA exemption depends on actual rent paid. If you do not pay rent, the exemption generally does not apply.
Can I claim HRA if I own a house?
You may claim HRA only for a rented accommodation you occupy and pay rent for. Owning a different house does not automatically block HRA, but facts matter.
Is HRA available in the new tax regime?
HRA exemption is generally associated with the old tax regime. Compare both regimes before deciding which one is better for you.
Can rent paid to parents qualify?
It may qualify if the arrangement is genuine, rent is actually paid, and proper documents are maintained. The owner should report rental income where applicable.
What documents should I keep?
Keep rent receipts, rental agreement, landlord PAN where required, bank payment proof, and employer declarations for the rental period.
Why is my exemption lower than HRA received?
The law exempts only the lowest of the three formula values. If rent is low or salary is high, taxable HRA can remain.
Does this calculator replace tax filing advice?
No. It is a planning estimate. Use your Form 16, salary breakup, rent documents, and current tax rules while filing returns.