HRA Exemption = Minimum of: HRA Received, Rent - 10% Basic, or 50%/40% of Basic
📊 What is the HRA Exemption Calculator and How Does It Work?
HRA exemption is the minimum of three values: actual HRA received, 50% of basic for metros (40% for non-metros), or actual rent paid minus 10% of basic salary. This calculator computes all three and finds the minimum — your exempt amount.
FormulaHRA exempt = Minimum of: (a) Actual HRA received, (b) 50% of basic (metro) or 40% (non-metro), (c) Actual rent paid – 10% of basic salary
🪓 Step-by-Step: How to Use This Calculator
- Enter your annual basic salary
- Enter annual HRA received as part of your salary
- Enter actual annual rent paid
- Select city type — metro or non-metro
- Click Calculate to see your HRA exemption and taxable HRA amount
📌 Example Calculation
Basic ₹6L/year, HRA ₹3L, rent ₹3.6L, metro: (a) ₹3L (b) ₹3L (c) ₹3.6L–₹60K=₹3L. All three equal ₹3L — full HRA is tax-free here.
✅ Benefits of Using This Calculator
- Know exact HRA exemption before filing your ITR
- Maximise tax-free HRA amount legally
- Verify your employer's HRA exemption calculation
- Understand the impact of city type on your exemption
- Plan rent amount to maximise tax benefit
- Claim the correct HRA amount when filing ITR
⚙️ Key Factors That Affect Results
- Basic salary — forms the base for all three calculations
- City type — metro (50%) vs non-metro (40%) of basic
- Actual HRA component in your salary structure
- Actual rent paid — must exceed 10% of basic to get any exemption
- Documentation required — rent receipts and agreement for >₹1L/year
- Landlord's PAN mandatory if rent exceeds ₹1 lakh/year
❓ Frequently Asked Questions
How is HRA exemption calculated?▼
Minimum of: (a) actual HRA received, (b) 50% of basic for metros / 40% for non-metros, (c) actual rent paid minus 10% of basic salary.
What documents are needed for HRA?▼
Rent receipts and rental agreement for rent exceeding ₹1 lakh/year. Landlord's PAN is mandatory if rent exceeds ₹1 lakh/year.
Can I claim both HRA and home loan deductions?▼
Yes, if you own a property in one city and live on rent in another city. Both HRA exemption and Section 24 interest deduction can be claimed.
What if I live in my own house but receive HRA?▼
HRA received is fully taxable — no exemption applies. Consider restructuring your salary to remove the HRA component.
Is HRA exemption available for self-employed individuals?▼
No. Section 10(13A) exemption is only available for salaried employees who receive HRA as part of their salary structure.