HRA Calculator
House Rent Allowance (HRA) is a salary component that can be partially or fully exempt from income tax. The exemption is the lowest of three limits — this calculator applies all three rules and shows exactly how much of your HRA is tax-free.
Frequently Asked Questions
What are the three rules for HRA exemption?+
The HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) Rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities or 40% for non-metro cities. All three are compared and the lowest is exempt from tax.
Which cities are considered metro for HRA purposes?+
Only four cities are classified as metro for HRA: Mumbai, Delhi (National Capital Region), Kolkata, and Chennai. All other cities — including Bengaluru, Hyderabad, Pune, and Ahmedabad — are non-metro for HRA calculation.
Can I claim HRA if I live in my own house?+
No. HRA exemption is only available if you are actually paying rent. If you live in a self-owned property, you cannot claim HRA exemption regardless of how much HRA your employer pays you.
Do I need rent receipts to claim HRA?+
Yes. You need rent receipts or a rent agreement to claim HRA exemption. If your annual rent exceeds ₹1 lakh, you must also provide the landlord's PAN number to your employer for TDS purposes.
Can I claim both HRA and home loan interest benefit?+
Yes, in certain cases. If you have a home loan on a property that you cannot currently occupy (e.g., you live in a rented house in one city and the property is in another), you can claim both HRA exemption and home loan interest deduction under Section 24(b).