HRA Exemption Calculator
Calculate HRA exemption and taxable HRA as per Indian income tax rules
Metro Cities
50% of basic salary exemption
Major metro cities include:
Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Jaipur, Lucknow, Kanpur, Nagpur, Indore, Thane, Bhopal, Visakhapatnam, and many more...
Non-Metro Cities
40% of basic salary exemption
- • All cities not classified as metro
- • Smaller towns and rural areas
- • Lower cost of living areas
Important Notes
- • HRA exemption is the minimum of three components
- • Rent receipts are mandatory for claiming exemption
- • 10% of (Basic + DA) is deducted from actual rent paid
- • Metro cities get 50% of (Basic + DA), others get 40%
- • Only salaried employees can claim HRA exemption
- • Rent must be paid to a landlord (not family members)
- • If you own a house in the same city, generally NO HRA exemption is allowed
- • DA (Dearness Allowance) is included in HRA calculations
- • Exceptions exist for construction, distance, or genuine reasons