What is a HRA Exemption Calculator?
The HRA Exemption Calculator computes the House Rent Allowance tax exemption available to salaried employees under the Old Tax Regime. HRA exemption is the minimum of three conditions involving actual HRA received, rent paid, and a percentage of basic salary.
Benefits of Using Rupee Logic HRA Exemption Calculator
Exact Exemption
Calculate the precise HRA exemption amount based on all three statutory conditions in one go.
Metro vs Non-Metro
Automatically applies 50% for metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% for others.
Taxable HRA
Know exactly how much HRA remains taxable after exemption for accurate ITR filing.
Compliance Ready
Understand PAN requirements for high rent payments and necessary landlord documentation.
Frequently Asked Questions — HRA Exemption Calculator
HRA exemption equals the minimum of: actual HRA received from employer; 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro; actual rent paid minus 10% of basic salary. The lowest of the three figures is your tax-exempt HRA. Any remaining HRA above the exemption is added to your taxable income.
No. HRA exemption is only available under the Old Tax Regime. If you opt for the New Tax Regime, HRA exemption cannot be claimed. However, the New Regime offers ₹75,000 standard deduction versus ₹50,000 in Old Regime. Use our Income Tax Calculator to determine which regime saves more tax for your specific situation with HRA.
Required documents: rent receipts for each month paid; if annual rent exceeds ₹1 lakh, landlord PAN is mandatory (submit to employer by March 31); rent agreement is recommended; if landlord is NRI, you must deduct 30% TDS before paying rent. No documents needed if annual rent is below ₹1 lakh, but keep receipts for 6+ years for potential IT scrutiny.
No. HRA exemption is only for employees actually paying rent. If you live in your own house, you cannot claim HRA exemption. However, if you own a house in City A but work and rent in City B, you can claim HRA for City B rent while the owned property in City A can have home loan interest claimed under Section 24(b).
Yes. You can claim both HRA exemption and home loan deductions if: you have a home loan for a property in a different city from where you work; or you live in a rented house while your owned property (with loan) is let out or in another city. This dual benefit is valid and common for people working in metros with home loans in their hometowns.