HRA Exemption Calculator

Enter Calculation

Basic Salary + DA (Annual, ₹)

HRA Received (Annual, ₹)

Total Rent Paid (Annual, ₹)

City Type Metro (Delhi, Mumbai, Kolkata, Chennai) — 50% Non-Metro — 40%

Results

HRA Exemption (Annual)

₹180,000

exempt under Section 10(13A)

Taxable HRA	₹120,000
1. Actual HRA received	₹300,000
2. Rent paid − 10% of basic	₹180,000
3. % of basic salary	₹300,000

What is the HRA Exemption Calculator?

This calculator applies to salaried taxpayers in India. House Rent Allowance (HRA) is a common salary component, and a part of it is exempt from income tax under Section 10(13A) of the Income Tax Act read with Rule 2A. This tool computes how much of your HRA is exempt and how much remains taxable. Figures here are illustrative; verify against the current tax year rules and your Form 16.

How the exemption is calculated

The exempt HRA is the least of these three amounts:

• Actual HRA received from your employer
• Rent paid minus 10% of basic salary (basic + DA)
• 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), otherwise 40%

The exemption is the minimum of the three statutory limits:

$$\text{Exemption} = \min\left\{ \begin{aligned} &\text{HRA Received} \\ &\text{Rent Paid} - 0.10 \times \text{Basic + DA} \\ &0.50 \times \text{Basic + DA} \end{aligned} \right.$$

For a non-metro city the third limit uses 40% instead of 50%:

$$\text{Exemption} = \min\left\{ \begin{aligned} &\text{HRA Received} \\ &\text{Rent Paid} - 0.10 \times \text{Basic + DA} \\ &0.40 \times \text{Basic + DA} \end{aligned} \right.$$

Whatever HRA is not exempt is added to your taxable income.

HRA exemption is the smallest of three amounts: actual HRA, rent minus 10% of basic, and a percentage of basic (50% metro / 40% non-metro).

How to use it

Enter your annual basic salary (including dearness allowance that forms part of retirement benefits), the annual HRA you received, and the total annual rent you paid. Select whether your city is metro or non-metro. The calculator shows the exempt amount, the taxable balance, and a breakdown of all three statutory limits so you can see which one binds.

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Worked example

Suppose basic salary = ₹6,00,000, HRA received = ₹3,00,000, rent paid = ₹2,40,000, metro city. The three amounts are: (1) ₹3,00,000; (2) \(₹2{,}40{,}000 - ₹60{,}000 = ₹1{,}80{,}000\); (3) \(50\% \times ₹6{,}00{,}000 = ₹3{,}00{,}000\). The minimum is ₹1,80,000, so that is exempt and ₹1,20,000 of HRA remains taxable.

In the worked example the exemption equals the smallest of the three bars.

FAQ

Which cities count as metro? Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% rate; all others use 40%.

Can I claim HRA exemption under the new tax regime? No — the HRA exemption is generally available only under the old tax regime.

What basic salary should I use? Use basic salary plus dearness allowance (if it forms part of retirement benefits), not gross salary.