HRA Calculator — Calculate Your HRA Tax Exemption
Find out how much HRA (House Rent Allowance) exemption you can claim under Section 10(13A). Enter your salary details, HRA received, and actual rent paid to see the exact exempt amount.
analyticsHRA Exemption Result
Tax saving estimated at 30% slab + 4% cess. Actual saving depends on your slab.
functionsHRA Exemption Formula (Section 10(13A))
HRA exemption under Section 10(13A) of the Income Tax Act is the minimum of the following three amounts:
The least of the three is exempt from tax. The remaining HRA is added to your taxable income.
How Does the HRA Calculator Work?
HRA (House Rent Allowance) is a salary component that employers provide to employees for rental accommodation expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as tax-exempt, reducing your taxable income. This calculator computes the exact exempt amount based on the formula prescribed by the Income Tax Department.
For example, if your Basic Salary is ₹6,00,000, DA is ₹0, HRA received is ₹3,00,000, rent paid is ₹2,40,000, and you live in a metro city — the three components are: (1) Actual HRA = ₹3,00,000, (2) 50% of Basic+DA = ₹3,00,000, (3) Rent − 10% of Basic+DA = ₹1,80,000. The minimum ₹1,80,000 is exempt. Your taxable HRA would be ₹1,20,000.
HRA exemption is available only under the Old Tax Regime. If you opt for the New Tax Regime, HRA exemption is not available. The calculator helps you decide which regime is more beneficial by showing the exact tax saving from HRA exemption.
workspace_premiumBenefits of Using an HRA Calculator
Accurate Tax Planning
Know exactly how much HRA exemption you can claim and plan your tax-saving investments accordingly. Avoid over or under-estimation.
Compare Regimes
Understand the tax benefit of HRA under the old regime. If HRA exemption is significant, the old regime may save you more tax than the new regime.
Optimize Rent
See how increasing or decreasing your rent impacts the exempt amount. This helps you decide the right rental budget from a tax perspective.
Avoid TDS Issues
Submit accurate HRA details to your employer for correct TDS deduction. This calculator ensures your claimed exemption matches the legal formula.
help_outlineFrequently Asked Questions
Who can claim HRA exemption?
Any salaried individual who receives HRA as part of their salary and pays rent for their accommodation. Self-employed individuals cannot claim HRA under Section 10(13A), but they can claim rent deduction under Section 80GG (up to ₹5,000/month).
Can I claim HRA if I live in my own house?
No. HRA exemption requires that you actually pay rent for your accommodation. If you own the house you live in, you cannot claim HRA exemption. However, if you own a house in one city and pay rent in another city for work, you can claim HRA exemption.
Do I need rent receipts for HRA exemption?
If annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer. Rent receipts are required for claiming HRA exemption. Keep monthly rent receipts signed by your landlord, rental agreement, and bank statements showing rent payments.
Is HRA exemption available under the New Tax Regime?
No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. If you opt for the New Regime, HRA is fully taxable. However, if your HRA exemption plus other deductions are significant, the old regime may still save more tax.
Can I pay rent to my parents and claim HRA?
Yes. You can pay rent to your parents and claim HRA exemption, provided the rental arrangement is genuine. Your parents must include the rent as income in their tax return. This is a legitimate tax-saving strategy. However, you cannot pay rent to your spouse and claim HRA.
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Pair this calculator with our educational guides for smarter tax planning. HRA Exemption Calculation · Old vs New Tax Regime · Section 80C Deductions · How to File ITR Online
This HRA calculator is for educational and illustrative purposes only. The calculation is based on the formula prescribed under Section 10(13A) of the Income Tax Act. Actual exemption may vary based on your specific circumstances. Always verify with your employer or a qualified CA before filing your tax return.
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