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Advanced HRA Calculator
Calculate your **HRA exemption, taxable income, and tax savings** under the **Income Tax Act**. Simply enter your details below.
Income Tax HRA Calculator
What is HRA?
House Rent Allowance (HRA) is a salary component provided by employers to help employees meet their rental expenses.
Tax Benefits: Under Section 10(13A) of the Income Tax Act (old tax regime only), you can claim exemption on HRA if you live in rented accommodation and receive HRA as part of your salary. The exempt amount depends on your salary, rent paid, and city of residence (metro or non-metro).
HRA exemption is the minimum of:
House Rent Allowance (HRA) is a salary component provided by employers to help employees meet their rental expenses.
Tax Benefits: Under Section 10(13A) of the Income Tax Act (old tax regime only), you can claim exemption on HRA if you live in rented accommodation and receive HRA as part of your salary. The exempt amount depends on your salary, rent paid, and city of residence (metro or non-metro).
HRA exemption is the minimum of:
- Actual HRA received from employer
- 50% of Basic Salary + DA (40% for non-metro cities)
- Rent Paid minus 10% of Basic Salary + DA
- HRA exemption is only available under the old tax regime[2][3][6].
- If annual rent exceeds ₹1 lakh, landlord's PAN is required[4][5].
- If you do not receive HRA but pay rent, Section 80GG may apply[1][5].
Tax-Saving Tips for HRA
- **Keep Rent Receipts:** Ensure you have **proper rent receipts** for proof.
- **Metro vs Non-Metro Difference:** In **metro cities**, HRA exemption is **50%** of salary; in **non-metro**, it’s **40%**.
- **Renting from Family:** If you pay rent to **parents**, make sure they declare it in their **ITR**.
- **Claim Correctly:** Use **Form 16** and declare HRA exemption properly.
By understanding **HRA exemption rules**, you can significantly **reduce your taxable income** and maximize your **tax savings**.
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