What is a HRA Exemption Calculator?
A HRA Exemption Calculator is a free online tool that helps you calculate hra exemption for tax savings based on salary, hra received, rent paid and city of residence. FinCalc Pro offers India's most accurate HRA Exemption Calculator with instant results, detailed charts, and step-by-step breakdowns — completely free with no login required.
HRA Exemption Calculator Formula
Metro cities (Mumbai, Delhi, Kolkata, Chennai): 50% of Basic. Non-metro cities: 40% of Basic. The lowest of the three conditions is the exempt HRA.
How to Use HRA Exemption Calculator
- Enter your basic salary per month
- Enter HRA amount received per month from employer
- Enter actual rent paid per month
- Select city type (metro or non-metro)
- Click Calculate to see exempt HRA and taxable HRA
HRA Exemption Calculator — Example
Basic: ₹40,000 | HRA Received: ₹20,000 | Rent Paid: ₹18,000 | Metro city → Exempt HRA: ₹14,000 | Taxable HRA: ₹6,000
Benefits of Using HRA Exemption Calculator
- Maximize HRA tax exemption legally
- Know exactly how much rent to pay for maximum benefit
- Understand metro vs non-metro city impact
- Plan rent agreements with landlord accordingly
Frequently Asked Questions — HRA Exemption Calculator
What is HRA exemption?
HRA (House Rent Allowance) exemption allows salaried employees to reduce their taxable income by the amount of HRA received, subject to certain conditions. This is only available under the old tax regime.
Can I claim HRA if staying with parents?
Yes, you can pay rent to your parents and claim HRA exemption, provided the rent is actually paid and your parents declare it as rental income in their tax returns. Keep rent receipts and payment records.
Is HRA available in new tax regime?
No. HRA exemption is not available under the new tax regime. You can only claim it under the old tax regime. Evaluate both regimes to decide which saves more tax overall.