Example
Basic ₹50,000/month, HRA ₹20,000/month, rent ₹18,000/month in Mumbai. Annually: HRA ₹2,40,000; rent − 10% of basic = ₹2,16,000 − ₹60,000 = ₹1,56,000; 50% of basic = ₹3,00,000. The lowest is ₹1,56,000, which is exempt; the remaining ₹84,000 is taxable.
How to use the HRA Exemption Calculator tool
- Enter your annual basic + DA, HRA received and rent paid.
- Choose whether you live in a metro city.
- See the exempt and taxable HRA.
Why SaralKit?
- Free forever: no "credits", no trial, no premium tier, no watermark and no daily limit.
- No account, ever: nothing to sign up for. Just open the page and use it.
- No data stored: your files and the numbers you type are processed by your own browser. We never upload, store or see them.
- Works offline: once the page has loaded, most tools keep working without internet.
- Open source: anyone can read the code on GitHub.
Frequently asked questions
How is HRA exemption calculated?
The exempt HRA is the lowest of: (1) actual HRA received, (2) rent paid minus 10% of basic + DA, and (3) 50% of basic + DA in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). The rest of your HRA is taxable.
Is HRA exemption available in the new tax regime?
No. HRA exemption can be claimed only under the old regime. Use the income tax calculator to see which regime is better for you.
Do I need my landlord's PAN?
Yes, if the rent you pay is more than ₹1 lakh a year (about ₹8,333 a month). Without it your employer may not allow the exemption.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent and they own the house; they must show it as income. Keep rent receipts and bank transfer records. Create receipts with our rent receipt generator.