Paying rent? You could save significant tax through HRA exemption. Here's how it works and a free calculator.
HRA Exemption Formula
HRA exempt = Minimum of:
- Actual HRA received
- 50% of salary (metro) or 40% (non-metro)
- Rent paid minus 10% of salary
Metro cities: Mumbai, Delhi, Kolkata, Chennai.
Quick Example
- Basic: ₹40,000/month, HRA: ₹20,000/month, Rent: ₹15,000/month (Metro)
- ① HRA received: ₹2,40,000/year
- ② 50% of salary: ₹2,40,000/year
- ③ Rent - 10% salary: ₹1,32,000/year
- Exempt: ₹1,32,000 (minimum of three)
- Tax saved: ~₹39,600 (at 30% bracket)
Important Rules
- ⚠️ HRA exemption is NOT available under the new tax regime
- Rent receipts mandatory if rent > ₹3,000/month
- Landlord PAN needed if annual rent > ₹1 lakh
- Cannot claim if living in own house
Calculate Your HRA
🏠 HRA Exemption Calculator — instant calculation, old regime only.
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