HRA exemption calculator
Find the tax-free part of your HRA under the old regime. Enter monthly or yearly figures.
Your HRA exemption
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Fill in your salary, HRA and rent, then press Calculate HRA exemption.
- How much of your HRA is tax-free
- All three legal limits, with the lowest one circled
- The taxable part to show your employer
How the HRA exemption works
The tax-free (exempt) part of HRA is the lowest of these three amounts for the year:
- the HRA you actually received;
- rent paid minus 10% of salary;
- 50% of salary if you live in a metro (Delhi, Mumbai, Kolkata, Chennai), or 40% elsewhere.
Here, salary means basic pay plus dearness allowance that counts for retirement benefits (and any commission fixed as a percentage of turnover). The rest of the HRA is taxable. If your rent is not more than 10% of salary, no HRA is exempt.
This applies only under the old tax regime. Keep rent receipts, and give your employer your landlord’s PAN if yearly rent is above ₹1,00,000. Official information:incometax.gov.in.
Frequently asked questions
Can I claim HRA exemption under the new tax regime?
No. HRA exemption is available only if you choose the old tax regime. Under the new regime the full HRA is taxable. Compare both regimes before you decide.
Which cities count as metro for HRA?
For the 50% limit, the long-standing metro cities are Delhi, Mumbai, Kolkata, Chennai. All other cities use 40%. Proposals under the new Income-tax Rules may add cities such as Bengaluru, Hyderabad, Pune and Ahmedabad, so confirm the current list before relying on it.
Do I need my landlord’s PAN?
Yes, if the rent you pay is more than ₹1,00,000 in the year. Your employer will ask for the landlord’s PAN along with rent receipts or the rent agreement.
What if I do not get HRA from my employer?
This calculator is only for HRA received from an employer. If you pay rent but get no HRA, a separate deduction under section 80GG may apply in the old regime, subject to its own limits.
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