HRA exemption calculator (old tax regime)
If you pay rent and receive HRA, part of it can be exempt from tax under the old tax regime. This calculator finds the exempt amount.
How to use this calculator
- Enter your monthly basic salary plus dearness allowance.
- Enter the HRA you receive each month and the rent you pay.
- Choose whether you live in one of the four metro cities or elsewhere.
- Read the exempt and taxable HRA, and the three limits that decide it.
Worked examples
Example 1
Basic ₹50,000, HRA ₹20,000, rent ₹18,000, living in a metro.
You enter
| Monthly basic plus dearness allowance | ₹50,000 |
|---|---|
| Monthly HRA received | ₹20,000 |
| Monthly rent you pay | ₹18,000 |
| City | Delhi, Mumbai, Kolkata or Chennai (50%) |
You get
| Exempt HRA each month | ₹13,000 |
|---|---|
| Exempt HRA each year | ₹1,56,000 |
| Taxable HRA each year | ₹84,000 |
| The three limits | HRA received ₹20,000; rent less 10% of basic ₹13,000; 50% of basic ₹25,000 |
Example 2
A non-metro city: basic ₹30,000, HRA ₹15,000, rent ₹20,000.
You enter
| Monthly basic plus dearness allowance | ₹30,000 |
|---|---|
| Monthly HRA received | ₹15,000 |
| Monthly rent you pay | ₹20,000 |
| City | Any other city (40%) |
You get
| Exempt HRA each month | ₹12,000 |
|---|---|
| Exempt HRA each year | ₹1,44,000 |
| Taxable HRA each year | ₹36,000 |
| The three limits | HRA received ₹15,000; rent less 10% of basic ₹17,000; 40% of basic ₹12,000 |
How it works
The exempt amount is the lowest of three numbers: the HRA you actually receive, the rent you pay minus 10% of basic, and 50% of basic (metro) or 40% (others).
This applies only if you choose the old tax regime. Keep rent receipts, and give your landlord's PAN to your employer if yearly rent is above the limit set in the rules.
Formula
Exempt HRA = the lowest of (HRA received; rent paid - 10% of basic plus DA; 50% or 40% of basic plus DA).
Common questions
Does this work in the new regime?
No, HRA exemption is not available there.
What if I live with my parents?
You can claim only if you actually pay rent and can document it.
Is it monthly or yearly?
Both are shown; the rule is applied month by month.
Learn more
Read the lesson Tax basics and good records on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.