HRA exemption calculator
House rent allowance is only tax free under the old regime, and only up to the least of three limits. Enter your basic, the HRA on your slip, your rent and your city to see the exempt amount and the tax it actually saves.
Your figures
Basic plus dearness allowance, if any
City
Old regime; used to price the saving at your slab
HRA exempt from tax (old regime)
₹1,80,000
₹60,000 of your HRA stays taxable. At your slab the exemption saves ₹56,160 a year.
- Tax saved / year
- ₹56,160
- Tax saved / month
- ₹4,680
- Taxable HRA
- ₹60,000
The three limits, least wins
| Limit | Amount |
|---|---|
| HRA actually received | ₹2,40,000 |
| Rent paid minus 10% of basic | ₹1,80,000 |
| 40% of basic (non-metro) | ₹2,40,000 |
| Exempt HRA | ₹1,80,000 |
Metro means Delhi, Mumbai, Kolkata or Chennai. Rent above ₹1 lakh a year needs the landlord PAN. The exemption does not exist under the new regime.
Questions
No. The new regime gives up the HRA exemption in return for lower slabs and the ₹75,000 standard deduction. HRA still appears on your payslip; it is simply taxed as salary.
Only Delhi, Mumbai, Kolkata and Chennai are metro cities for section 10(13A), where the limit is 50% of basic. Bengaluru, Hyderabad, Pune, Gurugram and every other city use the 40% limit.
If the rent you claim is more than ₹1,00,000 a year, your employer must collect the landlord PAN before allowing the exemption through payroll. Below that, rent receipts are enough.