HRA Calculator
Work out your exempt and taxable House Rent Allowance
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GrokAvailable only under the old tax regime.
Exemption = the least of these three
Results are estimates for illustration only, based on the inputs and assumptions you enter. They are not a guarantee of returns or an offer of any product. Rates for government schemes are revised periodically - please verify current rates before investing.
How the HRA calculator works
House Rent Allowance is a salary component that can be partly exempt from tax if you live in rented accommodation. Under Section 10(13A) of the Income Tax Act, the exempt portion is the least of three amounts; the rest is taxable.
Enter your basic salary plus DA, the HRA you receive and the rent you pay to see your exemption. Surat, like most cities, counts as non-metro for this rule.
Worked example
With Basic + DA of ₹6,00,000 a year, HRA of ₹2,40,000 and rent of ₹2,16,000: rent minus 10% of salary is ₹1,56,000, which is lower than the actual HRA (₹2,40,000) and 40% of salary (₹2,40,000). So ₹1,56,000 is exempt and ₹84,000 is taxable - the same result in a metro, where the 50% limit would be ₹3,00,000.
Things to keep in mind
- The HRA exemption is available only under the old tax regime.
- If annual rent exceeds ₹1,00,000, you need to provide your landlord's PAN to your employer.
- Keep rent receipts and a rent agreement as proof. Rent paid to a parent is allowed if they genuinely own the property and declare the rent as income; rent to a spouse is generally not accepted.
- If you don't receive HRA, you may be able to claim a deduction for rent under Section 80GG, subject to conditions.
Formula used
- Salary
- Basic pay + Dearness Allowance (if part of retirement benefits)
- Metros
- Delhi, Mumbai, Kolkata and Chennai
Frequently asked questions
Can I claim HRA and a home loan together?
Yes, in certain cases - for example if you live in a rented house in one city and own a house in another, or if your own house is far from your workplace. Keep documentation for both.
Is Surat a metro city for HRA?
No. For the HRA rule only Delhi, Mumbai, Kolkata and Chennai are metros, so the 40% limit applies in Surat.
What if I paid rent for only part of the year?
The calculation is done for the months you actually paid rent and received HRA. Enter the annual totals for that period.
Turn these numbers into a plan
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