India HRA Exemption Calculator

Using the India HRA Exemption Calculator

Use the qualifying HRA salary base, including only the DA and commission components that belong in that definition. Choose the four-city metro category only when the applicable rented accommodation is in Delhi, Mumbai, Kolkata or Chennai.

Worked example

Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.

Method and assumptions

Old regime: exemption is the least of HRA received, positive rent minus 10% of HRA salary, and 50% of HRA salary in Delhi/Mumbai/Kolkata/Chennai or 40% elsewhere. HRA salary means basic, qualifying retirement-benefit DA and qualifying turnover commission; enter the confirmed base. New regime gives zero HRA exemption. Use consistent annual figures; if salary/rent/city changes during the year, calculate each period separately. No proof-of-rent or eligibility determination.

Reference: incometax.gov.in — method and further reading ↗

Match the tax year and scope

Tax estimates depend on the year, jurisdiction and definitions used in the model. Check whether an input means gross income, taxable income or an amount after a particular deduction. Keep excluded credits, other taxes and special circumstances separate. A simplified scenario can explain a relationship without reproducing the amount on an actual return.

Common question

Why is the exemption zero under the new regime?

The HRA exemption modeled here belongs to the old-regime treatment. Selecting the new regime therefore leaves HRA taxable. In the old regime, the amount is limited by the lowest of HRA received, eligible rent less ten percent of salary, and the city-based salary percentage.