HRA Exemption Calculator

House Rent Allowance (HRA) is a component of salary that provides tax exemption for employees living in rented accommodation. The exemption is calculated based on specific rules and varies between metro and non-metro cities.

Our calculator helps you determine the exact HRA exemption you can claim, ensuring you optimize your tax savings while staying compliant with income tax regulations.

HRA Exemption Rules:

The exemption is the minimum of:

• Actual HRA received from employer
• Rent paid minus 10% of basic salary
• 50% of basic salary (metro cities) or 40% of basic salary (non-metro cities)

Metro vs Non-Metro Cities:

• Metro Cities: Mumbai, Delhi, Kolkata, Chennai - 50% of basic salary
• Non-Metro Cities: All other cities - 40% of basic salary

Important Conditions:

• You must be living in a rented house
• You must be receiving HRA from your employer
• You must have rent receipts as proof
• PAN of landlord required if annual rent > ₹1 lakh

Features:

• Automatic calculation based on HRA rules
• Metro and non-metro city differentiation
• Visual breakdown of exemption vs taxable HRA
• Detailed calculation steps
• Shareable calculation results