What is HRA Exemption Calculator?
Calculate HRA exemption for tax savings based on salary, HRA received, rent paid and city of residence Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
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 This 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
Worked Example
Basic: ₹40,000 | HRA Received: ₹20,000 | Rent Paid: ₹18,000 | Metro city → Exempt HRA: ₹14,000 | Taxable HRA: ₹6,000
Why Use This Tool?
- 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
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.
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