India HRA Calculator 2025
Calculate House Rent Allowance exemption for tax savings
🎯 What
India HRA Calculator 2025 helps salaried employees calculate the House Rent Allowance (HRA) exemption under the Income Tax Act.
👥 Who
Salaried employees receiving HRA, individuals in rented houses, HR & payroll teams, tax consultants & students.
💡 Why
HRA exemption reduces taxable salary. This calculator estimates the exempt and taxable portion of HRA as per Indian tax rules.
💰 Salary & HRA Details
Per month or annual (as selected)
Optional (if part of retirement)
💵 HRA Exemption
Calculation Breakdown
HRA Exemption Rules
📋 HRA Exemption Formula
HRA exemption is the MINIMUM of the following three:
🏙️ Metro Cities (50%)
- Delhi
- Mumbai
- Chennai
- Kolkata
🏘️ Non-Metro Cities (40%)
- All other cities
- Bangalore
- Hyderabad
- Pune, etc.
Important: Landlord PAN is mandatory if annual rent exceeds ₹1,00,000
Understanding HRA
🏠 What is HRA?
House Rent Allowance (HRA) is a component of salary provided by employers to employees for accommodation. A portion of HRA is exempt from income tax.
💼 Basic Salary Calculation
- Basic Salary is the base component of salary
- Dearness Allowance (DA) may be included if it forms part of retirement benefits
- HRA exemption is calculated on Basic + DA
🎯 Taxable vs Exempt HRA
- Exempt HRA reduces your taxable income
- Taxable HRA = HRA Received - HRA Exempted
- Only taxable portion is added to income for tax calculation
📋 Documentation Required
- Rent receipts from landlord
- Rental agreement copy
- Landlord PAN (if annual rent > ₹1L)
Practical Calculation Examples
EXAMPLE 1 — METRO CITY
Salary Details:
- • Basic Salary: ₹50,000/month
- • HRA Received: ₹20,000/month
- • Rent Paid: ₹18,000/month
- • City: Metro
Calculation:
- • A = ₹20,000
- • B = ₹18,000 - ₹5,000 = ₹13,000
- • C = ₹25,000
- • HRA Exempted = ₹13,000
- • Taxable HRA = ₹7,000
EXAMPLE 2 — NON-METRO CITY
Salary Details:
- • Basic Salary: ₹40,000/month
- • HRA Received: ₹15,000/month
- • Rent Paid: ₹10,000/month
- • City: Non-Metro
Calculation:
- • A = ₹15,000
- • B = ₹10,000 - ₹4,000 = ₹6,000
- • C = ₹16,000
- • HRA Exempted = ₹6,000
- • Taxable HRA = ₹9,000
Frequently Asked Questions
Q: Is HRA fully tax-free?
A: No, only the exempt portion (minimum of the three calculations) is tax-free. The remaining HRA is added to taxable income.
Q: Is landlord PAN mandatory?
A: Yes, if your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to claim HRA exemption.
Q: Can self-employed individuals claim HRA?
A: No, HRA is only for salaried employees. However, self-employed individuals can claim rent under Section 80GG.
Q: Does this calculator file tax returns?
A: No, this is an estimation tool only. You must report HRA exemption in your income tax return filed with the Income Tax Department.
Q: What if I live with parents and pay rent?
A: You can pay rent to parents and claim HRA, but they must declare it as rental income in their tax returns.
Q: Can I claim both HRA and home loan deduction?
A: No, you cannot claim HRA exemption if you're living in your own house. Home loan benefits are separate under Section 80C and 24(b).
Disclaimer: This India HRA Calculator 2025 is for informational and educational purposes only. Actual tax exemption depends on salary structure and income tax laws applicable for the assessment year. Always verify with official Income Tax rules or consult a qualified tax professional before claiming HRA exemption.