HRA Exemption Calculator (Metro / Non-Metro)

HRA Exemption Calculator India (Metro & Non-Metro)

House Rent Allowance (HRA) is one of the most important salary components for salaried employees in India. If you live in rented accommodation, you can claim HRA exemption under Section 10(13A) of the Income Tax Act while filing income tax under the old tax regime.

This HRA Exemption Calculator helps you determine how much of your HRA is tax-free and how much is taxable based on your city type and rent paid.

How HRA Exemption Is Calculated

The HRA exemption is calculated as the minimum of the following three values:

• Actual HRA received from employer
• Rent paid minus 10% of basic salary
• 50% of basic salary (for metro cities) or 40% (for non-metro cities)

The lowest of these three is the HRA exemption allowed.

Who Can Claim HRA?

• Salaried employees receiving HRA component
• Employees living in rented accommodation
• Individuals filing income tax under the old tax regime

Metro Cities for HRA

Only four cities qualify as metro for HRA calculation:

• Delhi
• Mumbai
• Chennai
• Kolkata

Important Points

• You must provide rent receipts to claim exemption.
• If annual rent exceeds ₹1 lakh, landlord PAN is required.
• HRA exemption is not available under the new tax regime.

Why Use This HRA Calculator?

• Instant exemption calculation
• Accurate as per Income Tax Act
• Helps in tax planning
• Avoid mistakes while filing ITR

Conclusion

Understanding HRA exemption helps salaried employees reduce taxable income and save tax legally. Use this calculator before filing your income tax return to maximize your tax savings.