CalcHRA Exemption Calculator
Check your HRA tax exemption under Section 10(13A). Estimate how much tax you save based on your basic salary, rent paid, and city type.
Monthly HRA Tax Exemption
Formula & Calculation
HRA Exempt = Minimum of (1. Actual HRA, 2. Rent - 10% Basic, 3. 40%/50% Basic)- Actual HRA Received: The HRA allowance component from your salary slip.
- Basic Salary: Your monthly basic salary.
- Rent Paid: The actual monthly rent paid to your landlord.
How to Use
- Enter your monthly basic salary.
- Enter your monthly HRA allowance.
- Enter the actual rent you pay to your landlord.
- Select your city type (Metro: Delhi/Mumbai/Kolkata/Chennai get 50%, non-metros get 40%).
House Rent Allowance (HRA) is one of the most effective tax-saving salary components for Indian employees. If you live in a rented home, you can claim a significant tax exemption under Section 10(13A) of the Income Tax Act. Calczia's HRA Exemption Calculator computes this for you in 5 seconds.
How HRA Exemption Is Calculated
Under Indian tax laws, your HRA exemption is the minimum of these three amounts:
- Actual House Rent Allowance (HRA) received from your employer.
- Actual rent paid minus 10% of your Basic Salary.
- 50% of your Basic Salary (if you live in a metro city) or 40% (if you live in a non-metro city).
What Qualifies as a Metro City for HRA?
For the 50% Basic Salary rule, only four cities are officially recognized as metros by the Income Tax Department: Delhi, Mumbai, Kolkata, and Chennai. Other major corporate hubs like Bengaluru, Pune, Hyderabad, and Gurugram are considered non-metros (40% rule).
Landlord PAN Requirements
If your annual rent paid exceeds ₹1,00,000, it is mandatory to provide your landlord's PAN to your employer to claim HRA tax exemption. Our calculator helps you plan and declare the correct details to maximize your in-hand take-home salary.
Frequently Asked Questions
How is HRA tax exemption calculated in India?
HRA exemption is the minimum of three amounts: (1) Actual HRA received, (2) 50% of basic salary (for metro cities) or 40% (for non-metro cities), or (3) Rent paid minus 10% of basic salary.
Can I claim both HRA and home loan tax benefits?
Yes, if you live in a rented house and pay rent while also paying home loan EMI for a property located in a different city or not yet occupied.
Do I need a landlord's PAN to claim HRA exemption?
Yes, providing your landlord's PAN is mandatory if the annual rent paid exceeds ₹1,00,000.
What cities qualify for 50% HRA in India?
Only four metro cities qualify for the 50% basic salary rule: Delhi, Mumbai, Kolkata, and Chennai. Other major hubs like Bengaluru or Hyderabad qualify for 40%.
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