HRA Calculator

HRA (House Rent Allowance) is one of the biggest tax-saving components in a salaried person's salary structure. Under Section 10(13A) of the Income Tax Act, the HRA exemption is the minimum of three conditions. Any HRA above the exemption is fully taxable as salary income.

Note: HRA exemption is only available under the Old Tax Regime. Under the New Regime (FY 2025-26), HRA is fully taxable regardless of rent paid.

1. Condition 1: Actual HRA received from employer per month
2. Condition 2: 50% of Basic Salary for Metro cities (Delhi, Mumbai, Chennai, Kolkata); 40% for all other cities
3. Condition 3: Actual Rent Paid minus 10% of Basic Salary (if this is negative, the exemption is zero — you save nothing on HRA)
4. HRA Exemption = Minimum of C1, C2, C3
5. Taxable HRA = HRA Received minus HRA Exemption

You must have a valid rent agreement and rent receipts. Landlord PAN is mandatory if annual rent exceeds ₹1 lakh.

Note: Cities like Bangalore, Hyderabad, and Pune are technically non-metro for HRA purposes under IT Act — despite being major metros. This is a common misconception.