HRA Exemption
House Rent Allowance
Old Regime Only
Calculate your exact HRA exemption using the Min(A,B,C) formula. Metro vs non-metro, tax saved at your slab, and pay-rent-to-parents strategy.
HRA Exemption Calculator
Calculate your House Rent Allowance exemption — Old Regime only
HRA at a Glance
Key HRA exemption facts every salaried employee should know
HRA Guide
Everything about claiming House Rent Allowance exemption
HRA Exemption Rule
The HRA exemption = minimum of:
(A) Actual HRA received
(B) Actual rent paid minus 10% of basic salary
(C) 50% of basic salary (metro) or 40% (non-metro)
Metro vs Non-Metro
Only Mumbai, Delhi, Chennai, and Kolkata qualify as metro (50% rule). Despite being major cities, Bengaluru, Hyderabad, Pune, Ahmedabad are all non-metro (40%). This is often a point of confusion.
Documentation Required
- Rent receipts (monthly or periodic)
- Signed rent agreement with landlord
- Landlord PAN if annual rent > ₹1L
- Bank statement showing rent transfers
- Form 12BB submitted to employer
Maximising HRA Benefit
- Ensure rent paid > 10% of basic (or no benefit!)
- Pay actual rent — don't over-declare
- Parents as landlords: Valid, but PAN + ITR declaration mandatory
- If no HRA in CTC: Use Section 80GG (₹60K/yr)
Calculate A
Actual HRA received monthly
Calculate B
Rent − 10% of Basic Salary
Calculate C
50% or 40% of Basic Salary
Take Minimum
Exempt = Min(A, B, C)
Frequently Asked Questions
HRA exemption questions answered
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