Work out how much of the House Rent Allowance in your salary is actually exempt from tax, and how much gets added to your taxable income.
Section 10(13A) exempts the least of three amounts: the actual HRA received; the rent paid minus 10% of basic salary; and 50% of basic salary for metro cities or 40% for non-metro. The calculator shows all three figures so you can see which one is limiting your exemption.
Only Delhi, Mumbai, Kolkata, and Chennai qualify for the 50% rate. Every other city, including Bengaluru, Hyderabad, and Pune, is treated as non-metro at 40%, regardless of the cost of living there.
No. The HRA exemption is only available under the old regime. If you have opted for the new regime, the full HRA is taxable, which is often a decisive factor when comparing the two regimes for salaried people paying significant rent.
Yes, provided the arrangement is genuine: they must own the property, you must actually pay the rent, and they must declare it as income on their return. Keep rent receipts and bank transfers as evidence — cash payments without records tend to attract scrutiny.
Yes, if your annual rent exceeds ₹1 lakh, you must report the landlord's PAN to your employer to claim the exemption.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.