Find out exactly how much of your House Rent Allowance is tax-exempt under the Old Tax Regime - and whether HRA makes Old Regime worthwhile for you.
HRA exemption follows a strict three-way test prescribed by the Income Tax Act. Your tax-free amount is always the lowest of three values - this calculator automates that test so you know exactly what to claim.
Important: HRA exemption is available only under the Old Tax Regime. Under the New Regime, your full salary (including HRA) is taxable. This calculator helps you quantify the HRA advantage of the Old Regime so you can make an informed regime choice.
Enter your salary components and rent details, then click Calculate HRA Exemption.
The Income Tax Act (Section 10(13A)) exempts HRA as the lowest of three amounts. Understanding which limit is binding for you is key to planning.
The HRA component your employer actually pays you. This is the ceiling - you cannot claim more than what you received.
50% of basic salary if you live in a metro city (Mumbai, Delhi, Chennai, Kolkata). 40% for all other cities. DA is added to basic if it forms part of retirement benefit.
Actual annual rent paid, minus 10% of basic salary (+ DA if applicable). This is zero if you pay less than 10% of basic as rent - meaning no HRA exemption is possible.
If your annual rent is ₹1,00,000 or more, you must furnish your landlord's PAN or Aadhaar to your employer at the time of submitting the HRA declaration. Without it, your employer cannot credit the exemption, and the full HRA becomes taxable.
HRA exemption is one of the most powerful deductions available in the Old Regime. If you rent a home - especially in a metro city - the HRA exemption can be substantial enough to offset the Old Regime's higher slab rates.
After getting your HRA exemption amount here, plug it into the Old vs New Regime Calculator to see the full picture with all your deductions combined.