Calculate House Rent Allowance (HRA) exemption and taxable amount
Metro: Delhi, Mumbai, Kolkata, Chennai
HRA Exemption is the minimum of the three amounts shown above.
Enter salary and rent details to calculate HRA exemption
HRA Exemption = Minimum of:
HRA (House Rent Allowance) is a component of your salary that provides tax exemption on rent paid. The exemption is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities or 40% for non-metro cities, or (3) Rent paid minus 10% of basic salary.
Metro cities for HRA purposes include Delhi, Mumbai, Kolkata, and Chennai. In these cities, you can claim 50% of basic salary as HRA exemption, while non-metro cities allow 40% exemption.
Yes, you can claim HRA even if you live with your parents, provided you pay rent to them. You must have a rent agreement and your parents must declare this rental income in their income tax returns. However, this doesn't work if you're paying rent to your spouse.
You need: (1) Rent receipts or payment proof, (2) Rental agreement, (3) PAN of landlord if annual rent exceeds ₹1,00,000. Maintain these documents as your employer may ask for them or they may be required during income tax filing.
Yes, you can claim both, but for different properties. You can claim HRA for the rented house where you live and home loan interest deduction (under Section 24) for a house you own in a different city. Both properties must be in different locations.
No, HRA exemption is not available if you opt for the new tax regime (Section 115BAC). HRA benefits are only available under the old tax regime. You need to choose between lower tax rates (new regime) and deductions like HRA (old regime).
If your HRA is less than the actual rent paid, your exemption will be limited to the actual HRA received. The excess rent cannot be claimed as HRA exemption, but you might be able to claim it under Section 80GG if you don't receive HRA from your employer.
Basic salary is crucial for HRA calculation as it forms the base for the percentage calculation (50% for metro/40% for non-metro). A higher basic salary means higher potential HRA exemption. The 10% of basic salary is also deducted from rent paid to calculate one component of the exemption.