Finance
HRA Exemption Calculator
HRA is one of the most-used salary exemptions, and one of the most miscalculated. This tool applies the standard rule — the lowest of three formulas — so you know exactly what's exempt and what's still taxable.
Exempted HRA (annual)
Taxable HRA
₹72,000
HRA received
₹2,40,000
Exemption is the lowest of:
- Actual HRA received: ₹2,40,000
- Rent − 10% of basic: ₹1,68,000
- 50% of basic: ₹2,40,000
Methodology
How we calculate this
min( Actual HRA, Rent − 10% × Basic, 50%×Basic (metro) or 40%×Basic (non-metro) )
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Frequently asked
- Which cities count as metro?
- For HRA purposes, metro = Delhi, Mumbai, Kolkata and Chennai. All other cities are treated as non-metro (40% cap on basic).
- Do I need rent receipts?
- Yes — to claim HRA exemption, you need rent receipts and (if rent exceeds ₹1L/year) the landlord's PAN.
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