HRA Exemption Calculator

It is the least of three amounts: the actual HRA received, the rent you paid minus 10% of salary, and 50% of salary for a metro city or 40% for any other city. Salary means Basic plus DA (the part counting for retirement benefits) plus commission fixed as a percentage of turnover. The law mandates the lowest of the three.

For FY 2025-26 (the year whose return was due in July 2026), only Delhi, Mumbai, Kolkata and Chennai qualify for 50%, and all other cities get 40%. From tax year 2026-27, the Income-tax Rules, 2026 widen the 50% list to eight cities by adding Bengaluru, Hyderabad, Pune and Ahmedabad. This calculator uses tax year 2026-27 by default and switches the rate if you pick FY 2025-26.

No. The HRA exemption (Section 10(13A) of the 1961 Act, now Section 11 with Schedule II of the 2025 Act) is available only under the old tax regime. If you have opted for the new regime, you cannot claim it whatever your rent or city.

Yes, if your annual rent is more than ₹1,00,000 (about ₹8,333 a month), you must report the landlord's PAN to your employer in your declaration (Form 124 from tax year 2026-27, earlier Form 12BB). If the landlord has no PAN, a signed declaration from the landlord is accepted instead.

If your rent is 10% of salary or less, the second figure becomes zero or negative, so your exemption is nil. If your salary has no HRA component, or you are self-employed, the HRA exemption does not apply and you may instead claim up to ₹60,000 a year under Section 80GG (1961 Act numbering), under the old regime and subject to conditions.