HRA Calculator

Estimate tax exemption on House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act.

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Monthly Basic Salary₹50,000

Monthly Dearness Allowance (DA)₹10,000

Monthly HRA Received₹25,000

Monthly Rent Paid₹20,000

City Type

Metros get 50% basic allowance; non-metros 40%.

About HRA Exemption

HRA tax exemptions are calculated under rule 2A. In Metro cities (Mumbai, Delhi, Kolkata, Chennai), the eligible limit is 50% of your Basic + DA. Rent receipts or lease agreements serve as primary documentation.

Annual Valuation

₹1,68,000

Tax-Exempt HRA (monthly: ₹14,000)

Exempt: 56%Taxable: 44%

Total HRA Received

₹3,00,000

Taxable HRA

₹1,32,000

Exemption Formula Breakdown

Exemption is the minimum of these three values:

1. Actual HRA Allowance Received

₹3,00,000 / year

2. 50% of Basic + DA

₹3,60,000 / year

3. Rent Paid minus 10% of Basic+DA

₹1,68,000 / year

Optimization Tip: Increase your monthly rent payments or allocate a larger share of CTC to Basic Salary to convert taxable allowance into exempt HRA.

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