Question 1

How much HRA is tax-free?

Accepted Answer

Your tax-free HRA is the least of three amounts: the actual HRA you receive, the rent you pay minus 10% of your salary, and 50% of salary if you live in Delhi, Mumbai, Kolkata or Chennai (40% for any other city). The calculator works this out for you instantly.

Question 2

How is HRA exemption calculated?

Accepted Answer

HRA exemption is the lowest of three figures: actual HRA received, rent paid minus 10% of (basic salary + DA), and 50% of salary for metro cities or 40% for non-metro cities. Just enter your salary and rent, and the calculator shows your exempt and taxable HRA.

Question 3

How much rent should I pay to get the maximum HRA exemption?

Accepted Answer

To claim the full exemption, your rent needs to be high enough that ‘rent paid minus 10% of salary’ isn’t the smallest of the three figures. The calculator shows an ‘Ideal Rent’ — the optimal rent you can pay to claim the maximum HRA exemption.

Question 4

Can I claim HRA if I pay rent to my parents?

Accepted Answer

Yes. You can pay rent to your parents and claim HRA, as long as the arrangement is genuine, you actually transfer the rent, and your parents report it as income in their return.

Question 5

Is HRA exempt under the new tax regime?

Accepted Answer

No. The HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new regime, your entire HRA is taxable.

Question 6

Which cities count as metro for HRA?

Accepted Answer

Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, where you can claim up to 50% of salary. Every other city, including Bengaluru, Hyderabad and Pune, is non-metro with a 40% limit.

Question 7

Do I need rent receipts to claim HRA?

Accepted Answer

Yes. Keep your rent receipts, and if your annual rent is more than ₹1,00,000 you’ll also need your landlord’s PAN to claim HRA through your employer.

Question 8

Accepted Answer

HRA Calculator

Calculate your House Rent Allowance exemption in seconds

Calculate your HRA exemption in 3 simple steps

Enter your salary details

Add rent details

View your exemption

Frequently Asked Questions