Worked Example: Metro city, ₹6L basic, ₹2.4L HRA, ₹2.5L rent
Inputs
- Basic Salary₹6,00,000
- HRA Received₹2,40,000
- Annual Rent₹2,50,000
- CityMetro (50%)
Results
- HRA Exemption₹1,90,000
- Taxable HRA₹50,000
Rent minus 10% of basic (₹1,90,000) is the limiting factor here — lower than both actual HRA and 50% of basic.
How HRA Exemption Calculator India Works
Exempt HRA is the minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic, (3) 50% of basic for metro or 40% for non-metro. Applicable under old tax regime only.
Frequently Asked Questions
Who can claim HRA exemption?
Salaried employees receiving HRA who pay rent can claim exemption under old tax regime. New regime does not allow HRA deduction.
Which cities are metro for HRA?
Delhi, Mumbai, Kolkata, and Chennai are treated as metro (50% of basic). Other cities use 40%.
Disclaimer
- This calculator gives you an estimate only. It is not a promise of exact results.
- This is general information, not personal financial, tax, or legal advice.
- You are responsible for your own decisions. Talk to a qualified professional when it matters.
- Tax laws change and depend on your income, country, and personal situation.
- Indian tax and government scheme rules can change each financial year. Please confirm with official sources or a chartered accountant (CA).
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