How HRA Calculator Works

The HRA (House Rent Allowance) Calculator helps you determine the portion of HRA that is exempt from tax and the portion that is taxable. It uses your Basic Salary, Dearness Allowance (DA) if applicable, HRA received, rent paid, and city type (Metro or Non-Metro). This ensures you comply with Section 10(13A) of the Income Tax Act and optimize tax benefits.

Calculation Steps:

1. Total Salary for HRA: Add Basic Salary and Dearness Allowance (DA) to get total salary considered for HRA.
2. Percentage of Basic Salary: Calculate 50% of total salary if living in a metro city, or 40% if in a non-metro city.
3. Rent Paid Adjustment: Subtract 10% of total salary from the rent you pay.
4. Exempt HRA: The minimum of (HRA received, step 2 amount, step 3 amount) is exempt from tax.
5. Taxable HRA: HRA received minus exempt HRA is taxable.

Examples:

Example 1: Metro City
Basic Salary: ₹50,000, DA: ₹10,000, HRA Received: ₹25,000, Rent Paid: ₹20,000, City Type: Metro
Step 1: Total Salary = Basic + DA = 50,000 + 10,000 = ₹60,000
Step 2: 50% of Total Salary = 0.5 × 60,000 = ₹30,000
Step 3: Rent Paid − 10% of Total Salary = 20,000 − 6,000 = ₹14,000
Step 4: Exempt HRA = min(HRA Received, Step 2, Step 3) = min(25,000, 30,000, 14,000) = ₹14,000
Step 5: Taxable HRA = HRA Received − Exempt HRA = 25,000 − 14,000 = ₹11,000

Example 2: Non-Metro City
Basic Salary: ₹40,000, DA: ₹5,000, HRA Received: ₹15,000, Rent Paid: ₹12,000, City Type: Non-Metro
Step 1: Total Salary = Basic + DA = 40,000 + 5,000 = ₹45,000
Step 2: 40% of Total Salary = 0.4 × 45,000 = ₹18,000
Step 3: Rent Paid − 10% of Total Salary = 12,000 − 4,500 = ₹7,500
Step 4: Exempt HRA = min(HRA Received, Step 2, Step 3) = min(15,000, 18,000, 7,500) = ₹7,500
Step 5: Taxable HRA = HRA Received − Exempt HRA = 15,000 − 7,500 = ₹7,500

Key Notes:

• Include DA in HRA calculation if it is part of your salary structure.
• Metro cities include Delhi, Mumbai, Kolkata, and Chennai.
• The calculator ensures you claim maximum HRA exemption legally available.
• You can download the result as a CSV or visualize it using the included graph.