HRA Exemption Calculator

How does this tool pick the exempt HRA?

It works out three monthly amounts: the HRA you receive, the rent paid minus 10% of basic, and 50% of basic (metro option) or 40% of basic (non-metro option). The exempt HRA is the smallest of the three, floored at zero, and the taxable HRA is the HRA received minus that amount. These percentages are the figures built into this tool.

Which cities does the metro option cover?

The tool offers only two choices. Its label for the metro option names Delhi, Mumbai, Kolkata and Chennai, and every other city falls under the 40% option. Which cities qualify can be revised by the rules, and this tool is not updated automatically, so check the current list with your employer or a chartered accountant before selecting.

What happens when I pay little or no rent?

With zero rent the tool replaces the result with a message that no exemption applies. With rent below 10% of basic, the second figure is negative and is shown as ₹0, so the exempt HRA is ₹0 and the whole HRA is taxable: basic ₹40,000, HRA ₹20,000 and rent ₹4,000 gives ₹0 exempt and ₹20,000 taxable.

Is the annual HRA exemption just 12 times the monthly figure?

Yes. The tool assumes the same basic, HRA and rent for all 12 months and the same city type. Part-year rent, a mid-year raise, a change of city or months with no rent are not modelled, so calculate those periods separately and add them.

Does the result depend on the tax regime?

This tool only computes the Section 10(13A) arithmetic and has no regime input. The Form 16 and regime-comparison tools on this site use an HRA exemption only in their old-regime calculations. Whether you can use the figure in your own return depends on the regime you choose.

Does the tool handle rent paid to parents or any proof requirements?

No. It only does arithmetic on the numbers entered. Rent agreements, receipts, landlord identification details, and the tax treatment of rent received by a parent are outside what it models. Confirm the documentation your employer requires.

What if my employer pays no HRA?

If HRA received is zero, the first figure is zero, so the exempt amount is ₹0. The tool does not calculate any alternative rent deduction available to people who do not receive HRA, since that is a different provision and not part of this calculation.