Tax Calculator
HRA Calculator
How much HRA can you actually claim as tax-free? The answer is the minimum of three rules.
What is HRA?
HRA exemption is the minimum of three values: actual HRA received, rent paid minus 10% of basic, and 50% of basic (metro) or 40% (non-metro).
Formula
Exempt HRA = min(
• Actual HRA received,
• Rent paid − 10% of Basic,
• 50% of Basic (metro) or 40% (non-metro)
)
• Actual HRA received,
• Rent paid − 10% of Basic,
• 50% of Basic (metro) or 40% (non-metro)
)
Worked example
₹
Basic ₹40K/month, HRA ₹20K, rent ₹25K, metro: Annual exemption = min(₹2.4L, ₹2.52L, ₹2.4L) = ₹2.4L tax-free.
Frequently asked questions
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata, Chennai. Bangalore, Hyderabad, Pune, not metro for HRA purposes.
Do I need rent receipts?
Yes, for rent above ₹1L/year you must submit landlord's PAN. Keep receipts + rental agreement.
Can I claim HRA + home loan deduction?
Yes, if you genuinely live in a rented home (different from your owned home or one being constructed). Many legitimate cases.