🏠 HRA Exemption Calculator (India)

Under Rule 2A of India's Income Tax rules, the HRA exemption is the smallest of three values: ① actual HRA received, ② actual rent paid minus 10% of basic salary(+DA), and ③ 50% of basic salary for metro cities or 40% for non-metro cities. For example, with a basic salary of ₹50,000, HRA of ₹25,000, and rent of ₹20,000 in a metro city: ① 25,000, ② 20,000 − 5,000 = 15,000, ③ 25,000 — the minimum is ₹15,000, which is the exempt amount.

Delhi, Mumbai, Kolkata, and Chennai have long been recognized as metro (50%) cities. There have been discussions about extending metro status to Bengaluru, Hyderabad, Pune, and Ahmedabad, but applicability can differ by assessment year, so this calculator lets you self-select metro status. When in doubt, check with your company's payroll team, a tax advisor, or the official Income Tax Department guidance for the relevant assessment year. Also note that a landlord's PAN is mandatory if annual rent exceeds ₹1,00,000.