HRA exemption is available only under the old tax regime. If your annual rent exceeds ₹1 lakh you must give your employer the landlord’s PAN. Self-employed people can claim Section 80GG instead.
How to use the HRA Exemption Calculator
- Basic salary + DA (yearly)
- HRA received (yearly)
- Rent paid (yearly)
- City
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your annual basic salary plus DA, HRA received, rent paid and whether you live in a metro city.
Tips
- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.
Common mistakes to avoid
- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.
Inputs explained
| Field | What to enter |
|---|---|
| Basic salary + DA (yearly) | Amount in ₹ |
| HRA received (yearly) | Amount in ₹ |
| Rent paid (yearly) | Amount in ₹ |
| City | Choose one: Metro (Delhi, Mumbai, Kolkata, Chennai), Non-metro |
What each result means
- Rent paid − 10% of salary = max([Rent paid (yearly)] – 0.1×[Basic salary + DA (yearly)], 0)
- HRA exemption = min([HRA received (yearly)], min([Rent paid − 10% of salary], [50% ÷ 40% of salary]))
- Taxable HRA = [HRA received (yearly)] – [HRA exemption]
Example values
How the main result changes when Basic salary + DA changes and everything else stays at the example values above:
| Basic salary + DA (yearly) | HRA exemption |
|---|---|
| 300,000 | 150,000 |
| 450,000 | 171,000 |
| 600,000 | 156,000 |
| 750,000 | 141,000 |
| 900,000 | 126,000 |
| 1,200,000 | 96,000 |
Formula
Exempt HRA = minimum of:1. Actual HRA received2. Rent paid − 10% of (basic + DA)3. 50% of (basic + DA) in metros (Delhi, Mumbai, Kolkata, Chennai), 40% elsewhereWorked example
Inputs — Basic salary + DA (yearly): ₹600,000; HRA received (yearly): ₹240,000; Rent paid (yearly): ₹216,000; City: Metro (Delhi, Mumbai, Kolkata, Chennai).
Results — Rent paid − 10% of salary = ₹156,000.00; 50% / 40% of salary = ₹300,000.00; HRA exemption = ₹156,000.00; Taxable HRA = ₹84,000.00.
Frequently asked questions
How is HRA exemption calculated?
The lowest of actual HRA, rent minus 10% of salary, and 50%/40% of salary.
Can I claim HRA in the new tax regime?
No – only in the old regime.
Do I need rent receipts?
Yes, and the landlord's PAN if rent exceeds ₹1 lakh a year.
What formula does the HRA Exemption Calculator use?
Exempt HRA = minimum of:.