HRA Calculator
Calculate House Rent Allowance exemption.
HRA Calculator
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HRA Exemption
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HRA Received—
Taxable HRA—
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The Finzorio HRA Exemption Calculator computes house rent allowance tax exemptions under Section 10(13A) of the Income Tax Act for metro and non-metro residential tenants in India.
How HRA Tax Exemption is Calculated
Under Section 10(13A) of the Income Tax Act (Old Tax Regime), the tax-exempt portion of House Rent Allowance is the MINIMUM of the following three legal limits:
HRA Exemption Legal Formula
Exempt HRA = MIN( Actual HRA Received, Rent Paid - 10% of Basic Salary, 50% of Basic [Metro] OR 40% [Non-Metro] )
- Basic Salary = Annual Basic Pay + Dearness Allowance (DA)
- Metro Cities = Mumbai, Delhi, Kolkata, Chennai (50% rule)
- Non-Metro Cities = All other Indian cities including Bengaluru, Hyderabad, Pune (40% rule)
HRA Document & Compliance Requirements
Mandatory document requirements for claiming HRA tax exemption:
| Annual Rent Threshold | Mandatory Document Proof | Landlord PAN Requirement |
|---|---|---|
| Up to ₹1,00,000 / year | Valid Rent Receipts with revenue stamps | Landlord PAN not mandatory |
| Exceeding ₹1,00,000 / year | Rent Receipts & Registered Rent Agreement | Mandatory Landlord PAN declaration (Form 60 if no PAN) |
| Rent paid to Parents | Valid Rent Receipts & Bank Transfer Slips | Parent must declare rental income in their ITR |
Worked Example: Metro HRA Exemption
Inputs: Basic Salary = ₹6,00,000/yr, HRA Received = ₹2,40,000/yr, Rent Paid = ₹2,70,000/yr in Mumbai (Metro).
1. Actual HRA Received = ₹2,40,000
2. Rent Paid minus 10% Basic = ₹2,70,000 - ₹60,000 = ₹2,10,000
3. 50% of Basic = ₹3,00,000
• Minimum of three = ₹2,10,000 EXEMPT HRA.
• Taxable HRA portion = ₹2,40,000 - ₹2,10,000 = ₹30,000.
Frequently Asked Questions
Yes, provided your parents own the property, you make documented bank transfers, and your parents declare the rent as income in their income tax return.