HRA Calculator
Calculate House Rent Allowance tax exemption and optimize salary
1,50020,00,000
Basic salary is used for HRA calculation (not gross salary)
Basic percentage: 62.5% | Recommended: 50-70%
010,00,000
HRA component in your salary slip
010,00,000
Monthly rent as per agreement/receipt
Metro: Mumbai, Delhi, Kolkata, Chennai | Non-Metro: All other cities
Advanced Options
💡 HRA Tax Benefits
- • HRA exemption reduces taxable income
- • Metro cities get 50% exemption, non-metro 40%
- • Minimum rent threshold: 10% of basic salary
- • Documentation required for amounts >₹3,000/month
- • Can optimize salary structure for maximum benefit
HRA Calculation Results
HRA Exemption:₹0
Taxable HRA:₹0
Monthly Tax Savings:₹0
Effective Rent Cost:₹0
Annual Tax Savings:₹0
Exemption Calculation (Minimum of)
1. Actual HRA Received:₹20,000
2. Rent - 10% of Basic:₹10,000
3. 50% of Basic Salary:₹25,000
HRA Exemption (Minimum):₹0
City-wise HRA Comparison
Rent Optimization Scenarios
HRA Optimization Strategy
Maximizing HRA Benefits
- • Negotiate higher basic salary component (60-70%)
- • Ensure rent exceeds 10% of basic salary
- • Choose metro city posting for 50% exemption
- • Maintain proper rent receipts and documentation
- • Consider family arrangement for rent payments
Compliance Best Practices
- • Get PAN card of landlord for rent >₹1L annually
- • Make rent payments through bank transfer
- • Submit Form 12BB declaration annually
- • Keep rental agreement and receipts ready
- • Avoid claiming for own property in same city