HRA Calculator – House Rent Allowance Exemption

HRA or House Rent Allowance is a component of an employee's salary provided by the employer to help cover rental accommodation expenses. It is partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act.

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, and (3) Actual rent paid minus 10% of basic salary.

For employees in metro cities (Delhi, Mumbai, Chennai, Kolkata), the HRA exemption uses 50% of basic salary in its second component. The exempt amount is still the minimum of all three values.

Yes. You can pay rent to your parents and claim HRA exemption, provided the arrangement is genuine and your parents declare this rental income in their own tax return. A rent agreement and receipts are recommended.

No. Only the exempt portion (minimum of three components) is tax-free. Any HRA received above that exempt amount is added to your taxable salary and taxed at your applicable income tax slab rate.

For non-metro cities, the second component of the HRA exemption formula uses 40% of basic salary (instead of 50%). Non-metro employees generally get a lower HRA exemption compared to metro employees with the same salary.

Yes, you can claim both simultaneously if you pay rent where you live and have a home loan on a property in a different city or one that is under construction. The home loan interest deduction is under Section 24(b).

Yes, completely free — no sign-up, no download, no usage limit. Works on all devices including mobile.