Tax

HRA Calculator

House Rent Allowance is tax-exempt only up to a limit. Enter your basic, HRA received, rent paid, and city type — we'll compute the lowest of the three components, which is what's exempt.

Inputs

₹1.00 L₹50.00 L
₹0₹30.00 L
₹0₹30.00 L

Metro: Mumbai, Delhi, Kolkata, Chennai. All others = non-metro.

HRA exemption

Lowest of the three is exempt under Section 10(13A)

Actual HRA received
₹3,00,000
50% of basic (metro)
₹3,00,000
Rent − 10% of basic
✓ Lowest — this is exempt
₹1,80,000
Exempt HRA
₹1,80,000
Taxable HRA
₹1,20,000

The 3-test rule

HRA exemption is the lowest of these three:

  1. A. Actual HRA received from employer
  2. B. 50% of basic (metro) or 40% of basic (non-metro)
  3. C. Annual rent paid minus 10% of basic

Important notes