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HRA exemption calculator.
Paying rent does not make your whole HRA tax free. Only the smallest of three amounts is, and which one wins depends on your rent, your basic and where you live.
Add DA if you get it and it counts towards retirement benefits.
I live in Delhi, Mumbai, Kolkata or Chennai
Only the old regime allows this. In the new regime all of your HRA is taxed.
Tax-free HRA, a year
₹1,80,000
Your rent is what holds it down. Only rent above a tenth of your basic counts.
- HRA paid
- ₹3,00,000
- Rent above 10% of basic
- ₹1,80,000
- 50% of basic
- ₹3,00,000
- Exempt (the smallest)
- ₹1,80,000
- Still taxed
- ₹1,20,000
How it is decided
Tax free: the smallest of these three, for the year
- HRA you are paid₹3,00,000
- Rent paid, less 10% of basicSmallest₹1,80,000
- 50% of basic₹3,00,000For a metro
What this assumes
Old regime only: the new regime gives no HRA exemption at all. Delhi, Mumbai, Kolkata and Chennai count as metros at 50% of basic; everywhere else is 40%. Add DA to basic if it counts towards retirement benefits. Rent above ₹1 lakh a year needs your landlord's PAN.
Rules and rates from
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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