HRA Calculator — House Rent Allowance Tax Exemption

HRA (House Rent Allowance) exemption under Section 10(13A) of the Income Tax Act is one of the largest tax breaks salaried Indians can claim — but only under the Old Regime. The exemption is the lowest of three values, which makes it confusing. This calculator runs all three and gives you the exempt amount instantly.

HRA Calculator

Calculate House Rent Allowance exemption — Old Regime only.

Currency: ₹ INR(India-focused)

HRA Exemption Breakdown

HRA Exempt (lowest of 3)–
Taxable HRA–
Limit 1: Actual HRA–
Limit 2: Rent − 10% of Basic+DA–
Limit 3: 40/50% of Basic+DA–

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How HRA Exemption Is Calculated

HRA exemption is the least of these three:

  1. Actual HRA received from employer.
  2. Rent paid − 10% of (Basic + DA).
  3. 50% of (Basic + DA) for metros (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metros.

Whichever is lowest is your tax-free HRA. Anything beyond that is added to your taxable salary.

Worked Example

Example: Basic ₹6,00,000, HRA ₹2,40,000, Rent ₹3,00,000, Non-metro. Limit 1 (actual HRA): ₹2,40,000. Limit 2 (rent − 10% basic): ₹3,00,000 − ₹60,000 = ₹2,40,000. Limit 3 (40% basic): ₹2,40,000. Lowest = ₹2,40,000 fully exempt. Taxable HRA = 0.

Common Mistakes

  • Claiming HRA in the New Regime — not allowed. New Regime gives no HRA benefit.
  • Forgetting DA — Dearness Allowance is added to Basic for the formula. Most private sector jobs have ₹0 DA; PSU and government jobs have substantial DA.
  • Not paying rent to a real landlord — paying parents is allowed, but they must declare the rental income in their ITR.
  • No PAN for landlord (rent > ₹1L/year) — required for HRA claim.
  • Not keeping rent receipts — required if rent > ₹3,000/month and your employer asks for proof.

HRA + Home Loan Interest (Both at Once?)

Yes, both can be claimed simultaneously if you genuinely live in a rented flat in the city you work in, while owning a home elsewhere (e.g., in your hometown). Many tech professionals do this — claim HRA in Bangalore while paying EMI on a flat in Pune that’s rented out or used by family.

Frequently Asked Questions

Is HRA available under New Regime?▾
No — HRA, LTA, and most exemptions are unavailable in the New Regime. The trade-off is the New Regime’s lower slab rates and the ₹12L+ rebate.
Can I claim HRA if I own a home?▾
Yes, if your owned home is in a different city or is rented out. Living in a self-occupied home rules out HRA.
What if I pay rent to my parents?▾
Allowed — but parents must declare it as rental income in their ITR and pay tax on it (after standard 30% deduction). Often worth it if parents are in a lower bracket than you.
Is HRA exemption available for self-employed?▾
No — Section 10(13A) is only for salaried employees. Self-employed can claim rent under Section 80GG (much smaller cap).

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