HRA Exemption Calculator
The exemption is the least of three statutory amounts. Most calculators show you only the answer; this one shows all three, because knowing which limb binds is what tells you whether anything can change it.
What you enter
- Basic salary (annual)
- Dearness allowance (annual) — Include only the part that forms part of retirement benefits.
- HRA received (annual)
- Rent paid (annual)
- Do you live in Delhi, Mumbai, Kolkata or Chennai? — Those four are the statutory metros for HRA. No other city qualifies, whatever its size.
What it tells you
- HRA exempt from tax
- HRA that stays taxable
How this is worked out
The exemption is the least of: the HRA actually received; 50% of salary in a metro (40% elsewhere); and rent paid minus 10% of salary. Salary here means basic plus the qualifying dearness allowance.
What it cannot know
- HRA exemption is available under the OLD tax regime only. Under the new regime it does not apply.
- You must actually pay the rent, and your landlord’s PAN is required where annual rent exceeds ₹1,00,000.
- This is arithmetic on the figures you entered, not a filing and not tax advice.
Questions
Is Bengaluru, Pune or Hyderabad a metro for HRA?
No. Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limb. Every other city, whatever its cost of living, uses 40%.
Can I claim HRA under the new regime?
No. The exemption sits in the old regime. Choosing between regimes depends on your whole return, which this page does not see.
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Sansara is not a SEBI-registered investment adviser or research analyst. This page performs arithmetic on numbers you enter and does not recommend any security, scheme or course of action.