Your Details

₹50K
₹10K₹5 L
₹20K
₹0₹2 L
₹15K
₹0₹2 L

HRA Tax Exemption

₹0

per month exempt from income tax

HRA Received

₹0

Taxable HRA

₹0

Annual Saving

₹0

Minimum of: (a) Actual HRA · (b) Rent − 10% Basic · (c) 50% Basic (metro) / 40% Basic (non-metro)

How the HRA Calculator Works

The calculator computes all three components of the HRA exemption rule — actual HRA received, rent paid minus 10% of basic salary, and 50%/40% of basic salary for metro/non-metro cities — and takes the lowest of the three as your tax-exempt HRA.

Example Scenarios

Scenario Result
Basic ₹50,000/mo, HRA ₹25,000/mo, rent ₹20,000/mo, metro Exempt HRA ≈ ₹15,000/month
Basic ₹30,000/mo, HRA ₹12,000/mo, rent ₹15,000/mo, non-metro Exempt HRA capped by 40% of basic
No HRA in salary, rent ₹15,000/mo paid Claim deduction under Section 80GG instead

* Illustrative estimates assuming constant annual returns. Actual results vary with market conditions.

Frequently Asked Questions

Common Mistakes to Avoid

  • Claiming HRA exemption under the new tax regime, where it isn't available at all.
  • Forgetting that the exemption is the lowest of three values, not simply the HRA received.
  • Not keeping rent receipts/rental agreement as proof when rent exceeds ₹1 lakh/year (PAN of landlord required).

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* Calculations assume constant annual returns. Actual mutual fund returns vary. Past performance is not indicative of future results. FD comparison uses 7% p.a. SIP returns are compounded monthly.

Discussion

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