HRA Calculator
The house rent allowance exemption you can actually claim.
HRA exemption is the least of three amounts: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic in metro cities or 40% elsewhere. With ₹60,000 basic, ₹24,000 HRA and ₹25,000 rent a month in Mumbai, the exempt amount is ₹2,28,000 a year.
Your Inputs
Exempt HRA
Exempt
₹2.28 L
Taxable
₹60 K
Taxable HRA
₹60,000
Tax saved
₹71,136
Formula used
Exemption = min(HRA received, Rent - 10% of basic, 50%/40% of basic)
How this works
HRA is only available under the old regime
The new regime removes the HRA exemption entirely. If you pay significant rent in a metro, that exemption alone often decides which regime is cheaper for you — run the income tax calculator both ways before choosing.
Documentation that survives scrutiny
Keep the rent agreement, bank transfers (not cash), and monthly receipts. If annual rent exceeds ₹1,00,000 you must report the landlord's PAN; if it exceeds ₹50,000 a month you must deduct 2% TDS under Section 194-IB and file Form 26QC.
Frequently asked questions
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