HRA Calculator – Calculate HRA Exemption

What is HRA Exemption?

HRA exemption is the portion of your House Rent Allowance that is not taxable. It is calculated as the minimum of:

• Actual HRA received from your employer
• Rent paid minus 10% of your basic salary
• 50% of basic salary (metro cities) or 40% (non-metro cities)

Metro vs Non-Metro Cities

The exemption percentage depends on your city:

• Metro Cities (50%): Delhi, Mumbai, Kolkata, Chennai
• Non-Metro Cities (40%): All other cities in India

Eligibility for HRA Exemption

To claim HRA exemption, you must:

• Receive HRA as part of your salary
• Actually pay rent for accommodation
• Not own a house in the same city (with exceptions)
• Maintain proper rent receipts and agreements
• Provide landlord's PAN if rent exceeds ₹1 lakh annually

How to Use the HRA Calculator

1. Enter your annual basic salary
2. Enter the HRA amount received from your employer
3. Enter the total rent paid during the year
4. Select whether you live in a metro or non-metro city
5. Click Calculate to see your exemption

Documents Required for HRA Claim

Keep these documents ready:

• Rent receipts: Monthly receipts from landlord
• Rent agreement: Valid rental agreement
• Landlord's PAN: If annual rent exceeds ₹1 lakh
• Self-declaration: If PAN not available or for lower amounts

Benefits of Using ToolsGen HRA Calculator

✔ Accurate HRA exemption calculation
✔ Visual pie chart representation
✔ Metro/Non-metro city consideration
✔ User-friendly interface
✔ Works on mobile and desktop
✔ Completely free to use

Who Should Use This Calculator?

• Salaried employees receiving HRA
• HR and payroll professionals
• Tax consultants and CAs
• Employees planning tax savings
• Anyone living in rented accommodation