HRA Calculator
Calculate your House Rent Allowance (HRA) tax exemption instantly. Find out how much of your HRA is tax-free and maximize your salary savings.
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HRA Exemption
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Tax-free per month
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Understanding HRA Tax Exemption
House Rent Allowance (HRA) is a component of your salary that can provide significant tax benefits if you're living in a rented accommodation. Understanding how HRA exemption works can help you save thousands in taxes.
HRA Exemption Formula
The HRA exemption is calculated as the minimum of the following three amounts:
- Actual HRA received from your employer
- Rent paid minus 10% of basic salary
- 50% of basic salary (for metro cities: Mumbai, Delhi, Kolkata, Chennai)
- 40% of basic salary (for non-metro cities)
Documents Required for HRA Claim
- Rent receipts from landlord
- Rental agreement copy
- Landlord's PAN (if annual rent exceeds ₹1 lakh)
- Proof of rent payment (bank statements/cheques)
Important Points to Remember
• HRA exemption is not available if you live in your own house
• You cannot claim both HRA exemption and home loan interest deduction for the same property
• If you're paying rent to parents, maintain proper documentation
• HRA exemption is calculated on gross salary (Basic + DA)
Frequently Asked Questions
How is HRA exemption calculated?
HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, or (3) 50% of basic salary for metro cities (40% for non-metro cities).
Which cities are considered metro for HRA?
Mumbai, Delhi, Kolkata, and Chennai are considered metro cities for HRA calculation. In metro cities, exemption is 50% of basic salary, while in non-metro cities it's 40%.
Can I claim HRA if I live with parents?
Yes, you can claim HRA exemption even if you live with parents by paying rent to them. However, if rent exceeds ₹1 lakh per year, you'll need to provide their PAN details.