HRA Exemption Calculator (India)
Calculate House Rent Allowance (HRA) tax exemption for Indian income tax filing. Determines taxable HRA based on actual HRA, basic salary, rent paid, and metro/non-metro status per Indian tax law.
Formula
HRA Exemption = min(Actual HRA, % of Basic, Rent - 10% of Basic); Taxable = HRA - Exemption
- Metro: 50% of basic; Non-metro: 40%
- Rent limit: Actual - 10% of basic
- All three limits must be considered
Metro Employee
Inputs
- Basic Salary (₹): 50000 ₹
- HRA Received (₹): 25000 ₹
- Actual Rent Paid (₹): 28000 ₹
- City Category: metro
₹50k basic, ₹25k HRA, ₹28k rent. Min(25000, 25000, 23000) = ₹23k exempt, ₹2k taxable.
Frequently asked questions
Why is my full HRA not exempt?
Exemption is limited by basic salary % AND (rent - 10% basic). Lowest of three applies.