HRA Calculator - Calculate House Rent Allowance Exemption

HRA exemption under Section 10(13A) is the LOWEST of three rules: (1) Actual HRA received from employer, (2) Actual rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro. Example: Basic ₹50,000/month, HRA ₹25,000, Rent ₹20,000 in Mumbai — Rule 1: ₹3L, Rule 2: ₹1.8L, Rule 3: ₹3L. Exemption = ₹1.8L (lowest). Use the free HRA Calculator on AbacusHand to calculate your exact result instantly.

For metro cities (Delhi, Mumbai, Chennai, Kolkata), HRA exemption is up to 50% of basic salary. For all other cities (Pune, Bangalore, Hyderabad, Ahmedabad, etc.), it is 40% of basic salary. Note: Despite being major cities, Bangalore, Hyderabad, and Pune are classified as non-metro for HRA purposes. On a ₹60,000 basic salary, metro employees can claim up to ₹30,000/month vs ₹24,000/month for non-metro in HRA exemption. Use the free HRA Calculator on AbacusHand to calculate your exact result instantly.

Yes, you can claim HRA exemption if you pay rent and receive HRA as part of your salary. To claim it in ITR, you need rent receipts from your landlord. If annual rent exceeds ₹1 lakh, the landlord must provide their PAN. You can also pay rent to parents and claim HRA, but the rent must be genuine — parents must show it as rental income in their ITR. On a ₹30,000 monthly rent, annual rent is ₹3.6 lakh, requiring landlord PAN. Use the free HRA Calculator on AbacusHand to calculate your exact result instantly.

Rent receipts are mandatory for HRA claims where annual rent exceeds ₹1 lakh (₹8,334/month). Below this limit, a self-declaration may suffice for employer TDS purposes, but you may need to provide documentary evidence if the income tax department sends a notice. Always maintain rent receipts, rent agreement, and bank transfer records. Digital payment records (UPI/bank transfer) serve as proof alongside receipts. Use the free HRA Calculator on AbacusHand to calculate your exact result instantly.

No, HRA exemption is NOT available under the new tax regime (FY 2025-26 default regime). In the new regime, you only get a standard deduction of ₹75,000 — no HRA, 80C, or other exemptions. This is why many salaried employees paying high rent (above ₹20,000-25,000/month) may benefit from the old regime. On a ₹50,000 basic with ₹25,000 HRA and ₹20,000 rent in Mumbai, old regime saves approximately ₹1.8 lakh more via HRA. Use the free HRA Calculator on AbacusHand to calculate your exact result instantly.