Work out how much of your HRA is tax-exempt under the old regime
Metro: Delhi, Mumbai, Kolkata, Chennai | Non-Metro: All other cities
Basic + DA (if DA forms part of retirement benefits)
House Rent Allowance from your employer
Actual rent paid to landlord
₹0
Exemption is the minimum of the following:
₹20,000 - ₹5,000
Lowest of above three values
Tax savings use a flat 30% rate for illustration. Your actual saving depends on your slab and cess.
₹0
Exempt/Year
₹0
Taxable/Year
Finds how much of your monthly HRA is exempt from tax under section 10(13A). The rest is added to taxable salary. This applies only if you are on the old tax regime and actually pay rent.
Exemption is the lowest of three figures: HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% (non-metro). Taxable HRA = HRA received − exempt amount.
Example: basic ₹50,000, HRA ₹25,000, rent ₹20,000, metro → rent minus 10% is ₹15,000 (the limiting figure), so exempt HRA ₹15,000 and taxable HRA ₹10,000 per month.
For income tax, metro means Delhi, Mumbai, Kolkata, and Chennai — the third cap is 50% of basic. Everywhere else uses 40%. Pick the city where you rent and work, not where your employer is registered.
Keep rent receipts and a rental agreement. If annual rent exceeds ₹1 lakh, receipts are mandatory. If monthly rent is above ₹1 lakh, your landlord's PAN is required. Submit proofs to HR during the investment declaration window.
HRA exemption is not available under the new tax regime. If you opted into the new regime for FY 2025-26, your full HRA is taxable regardless of rent paid. You can still use this tool to see what you would save on the old regime.
You must be renting — not living in your own house in the same city. Basic salary here means basic plus DA that counts toward retirement benefits. Compare the exempt figure with what your employer's payroll shows on your Form 16.
Disclaimer: Figures are estimates under section 10(13A). Actual exemption depends on your regime, rent proofs, and employer payroll.
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