Usually basic pay (sometimes DA if forming part of retirement benefits) — confirm your CTC structure.
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Free HRA Calculator
Exempt vs taxable house rent allowance
Use annual basic, HRA received, and rent paid. Exemption is the least of three statutory limits.
Use annual figures for a yearly exemption estimate.
Exemption is the least of:
Illustrative estimate only. Rules change; this is not tax, legal, or financial advice. Confirm with a qualified professional before filing or paying.
Understanding HRA Exemption
Exemption is the least of three amounts under the Income-tax Act
Metro cities usually allow 50% of basic; others 40%
Rent paid minus 10% of basic is the third limit
HRA received above the exempt amount is taxable
Quick Reference
- Metro: Delhi, Mumbai, Kolkata, Chennai (typical)
- Non-metro cities
- Rent reduced by 10% of basic
How This Calculator Works
- 1
Enter annual basic salary
- 2
Enter annual HRA received
- 3
Enter annual rent paid
- 4
Choose metro or non-metro and read exempt vs taxable HRA
Key Concepts
Higher % of basic is allowed for notified metro cities.
Employers may ask for rent receipts / landlord PAN above thresholds.
HRA exemption under section 10(13A) is generally for the old regime path — confirm current rules for your case.
HRA Calculator FAQs
This tool expects annual amounts. Multiply monthly figures by 12 for a yearly view.
Salary structuring questions?
Talk to experts or use Vardhan Tax tools for clearer compliance.
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