How to use the HRA Exemption Calculator
- Enter your monthly basic salary and DA.
- Enter the HRA you receive and the rent you pay.
- Select whether you live in one of the four metro cities.
- The lowest of three amounts is your tax-free HRA.
HRA exemption rule
The exempt HRA is the lowest of:
- Actual HRA received.
- Rent paid minus 10% of (basic + DA).
- 50% of (basic + DA) in Delhi, Mumbai, Kolkata or Chennai; 40% in other cities.
Note: Bengaluru, Hyderabad, Pune and other cities count as non-metro for HRA.
Documents needed
Give your employer rent receipts. If your yearly rent is more than ₹1 lakh, the landlord's PAN is required. You can claim HRA for rent paid to your parents if they own the house and declare the rent as income, but not for rent paid to your spouse.
Frequently asked questions
Can I claim HRA in the new tax regime?
No. HRA exemption is available only in the old tax regime.
Can I claim HRA if I live with my parents?
Yes, if you actually pay rent to your parents, they own the house and they show the rent in their income tax return.
Is Bengaluru a metro city for HRA?
No. For HRA exemption, only Delhi, Mumbai, Kolkata and Chennai get the 50% limit. All other cities use 40%.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.