How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of Basic+DA for metro cities or 40% for non-metro, (3) Rent paid minus 10% of Basic+DA.

Which cities are considered metro for HRA?

Delhi, Mumbai, Kolkata, and Chennai are considered metro cities for HRA exemption purposes. All other cities are non-metro.

Can I claim both HRA and home loan deduction?

Yes, you can claim both HRA exemption and home loan interest deduction (Section 24b) if you live in a rented house in one city and have a home loan on a property in another city. Both claims cannot be for the same property.

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HRA Exemption Calculator

Calculate your House Rent Allowance tax exemption under Section 10(13A).

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Basic Salary (Monthly)

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Dearness Allowance (Monthly)

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Enter 0 if not applicable

HRA Received (Monthly)

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Total Rent Paid (Monthly)

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I live in a Metro City Metro cities: Delhi, Mumbai, Kolkata, Chennai

HRA Exemption Breakdown

Actual HRA Received (Monthly)—

50%/40% of Salary—

Rent Paid − 10% of Salary—

HRA Exempt from Tax (Monthly)—

Annual HRA Exemption—

Taxable HRA (Monthly)—

What is HRA and How Does It Work?

House Rent Allowance (HRA) is a component of your salary paid by your employer to help cover rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of the HRA you receive can be exempt from tax, provided you actually pay rent for your accommodation.

The exempt amount is calculated as the minimum of three values: the actual HRA received, 50% of Basic+DA (metro) or 40% (non-metro), and rent paid minus 10% of Basic+DA. The remaining HRA, if any, is added to your taxable income.

HRA Rules: Metro vs Non-Metro

The percentage used in the second condition depends on your city of residence. If you live in Delhi, Mumbai, Kolkata, or Chennai, you get a higher exemption (50% of Basic+DA). For all other cities, it's 40%. This reflects the higher rental costs in metro cities.

Can I Claim HRA and Home Loan Deduction Together?

Yes, but only under specific conditions. You can claim both HRA exemption and home loan interest deduction (Section 24b) if: (1) you live in a rented house in one city and have a home loan on a property in a different city, or (2) you live in a rented house in the same city but have genuine reasons (e.g., the owned property is too far from your workplace). You cannot claim both for the same property.

Documents Needed for HRA Claim

Rent receipts for all months claimed
Rent agreement (if annual rent exceeds ₹1,00,000)
Landlord's PAN (if annual rent exceeds ₹1,00,000)
Declaration from landlord if PAN is not available

Disclaimer: This calculator provides an estimate. Actual HRA exemption depends on your salary structure and employer's HRA policy. Please consult a qualified CA for official calculations.