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HRA Tax Exemption Calculator

HRA Exemption Calculator

Calculate tax-exempt HRA amount under Income Tax rules for Metro & Non-Metro cities.

All Calculators
HRA Received
₹2,40,000
Tax Exempt HRA
₹1,90,000
Taxable HRA
₹50,000

HRA Exemption Breakdown Chart

Section 10(13A) Exemption Rule: Tax exempt HRA is calculated as the minimum of actual HRA received, rent paid minus 10% of salary, or 50%/40% of salary based on location.

Understanding House Rent Allowance (HRA) Exemption

Salaried individuals receiving House Rent Allowance (HRA) as part of their salary structure can claim income tax exemption under Section 10(13A) of the Income Tax Act, 1961 (Old Tax Regime).

HRA Exemption Calculation Rule

The tax-exempt HRA amount is the lowest of the following 3 figures:

  • 1. Actual HRA received from employer during the financial year.
  • 2. 50% of (Basic Salary + DA) if residing in a Metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% for Non-Metro cities.
  • 3. Actual Rent Paid minus 10% of (Basic Salary + DA).

Worked Example

Suppose an employee in Mumbai earns a Annual Basic Salary of ₹5,00,000, receives HRA of ₹2,40,000, and pays ₹2,40,000 in annual rent:

  • 1. Actual HRA Received = ₹2,40,000
  • 2. 50% of Basic (Metro) = ₹2,50,000
  • 3. Rent Paid (₹2,40,000) - 10% Basic (₹50,000) = ₹1,90,000

The minimum of the three is ₹1,90,000. Therefore, ₹1,90,000 is tax-exempt, and the remaining ₹50,000 is taxable HRA.

Calculator Disclaimer — One Source Financial Services (ARN: 48230)

This calculator is provided for general informational and illustrative purposes only. The maturity values, returns, and projections shown are indicative estimates calculated using standard compound interest assumptions based on the user's inputs — they do not constitute financial advice, guaranteed returns, or official commitments from One Source Financial Services or product issuers. Actual returns are subject to market volatility, load structures (TER), compounding conventions, applicable Tax Deducted at Source (TDS), and capital gains taxes. Please consult official scheme information documents (SID / KIM) and seek professional financial guidance before making investment decisions.