About the HRA Calculator
What is the HRA Calculator?
If you live in rented accommodation and receive house rent allowance, part of it is tax-free in the old regime. The HRA exemption is the lowest of three amounts, so the calculator works out all three.
It also tells you how much rent you would need to pay to make the whole HRA exempt.
How to use the HRA Calculator
- Monthly Basic Salary (₹) (sample: 50,000)
- Monthly DA Counted for Retirement Benefits (₹) (sample: 0)
- Monthly HRA Received (₹) (sample: 20,000)
- Monthly Rent Paid (₹) (sample: 18,000)
- City (sample: Mumbai, Delhi, Kolkata or Chennai)
- Your Income Tax Slab (sample: 30%)
- Press Calculate HRA Exemption (results also refresh as you type). The result card shows the HRA Exemption (per year), along with Taxable HRA, Tax saved (old regime), Rent paid − 10% of basic and 50% of basic.
Formula used
Exemption = Least of (HRA received, Rent − 10% of basic + DA, 50% or 40% of basic + DA)
- 50% = Mumbai, Delhi, Kolkata and Chennai
- 40% = all other cities
HRA exemption is not available in the new tax regime.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly Basic Salary (₹) | 50,000 |
| Monthly DA Counted for Retirement Benefits (₹) | 0 |
| Monthly HRA Received (₹) | 20,000 |
| Monthly Rent Paid (₹) | 18,000 |
| City | Mumbai, Delhi, Kolkata or Chennai |
| Your Income Tax Slab | 30% |
| Result | Value |
|---|---|
| HRA Exemption (per year) | ₹1,56,000 |
| Taxable HRA | ₹84,000 |
| Tax saved (old regime) | ₹48,672 |
| Rent paid − 10% of basic | ₹1,56,000 |
| 50% of basic | ₹3,00,000 |
| Rent needed for full exemption (monthly) | ₹25,000 |
| Regime | HRA exemption is available only in the old tax regime |
Tips for using the HRA Calculator
- Give your landlord's PAN to your employer if rent exceeds ₹1 lakh a year.
- Paying rent to parents is allowed if they own the house and declare the rent as income.