Tax tool
HRA calculator
Enter basic salary, HRA, and rent paid — see the tax-exempt HRA under Section 10(13A). All three rules visible.
Start with the free manual tool. If you want the real document view after that, analyze a statement PDF.
Free tool
HRA exemption under Section 10(13A)
Enter monthly basic salary, DA (if any), HRA received, and actual rent paid. Toggle metro / non-metro. The calculator shows the exempt HRA amount, the binding rule, and all three rules for transparency.
HRA inputs (monthly)
Enter monthly amounts from your salary slip. The calculator computes annual exemption and the binding constraint.
From your salary slip — 'Basic' line item.
Usually ₹0 for private sector. Government employees have DA.
HRA line on your salary slip.
Rent you actually pay to your landlord. Needs rent receipts for proof if over ₹1 lakh/year.
Annual exemption: ₹2,04,000. Binding rule: Rent − 10% of basic+DA.
Monthly amount not taxed.
HRA received minus exempt portion.
Tax-free HRA for the year.
Added to salary income for tax.
Rule 1: Actual HRA received = ₹20,000
Rule 2: 50% of basic+DA = ₹25,000
Rule 3: Rent − 10% of basic+DA = ₹17,000
Exemption = smallest of the three. Binding rule shown in green.
Natural next step
Have you actually been paying rent consistently?
Verifying the rent payment isn't always simple — bank transfers are cleaner than cash for HRA claims. Upload your bank statement and our analyzer can surface your monthly rent payments, confirming the number you'll enter on your ITR.
What it gives you
Fast enough for a first pass
Each tool is intentionally narrow. The job here is a clean estimate, not a fake replacement for a full statement analysis.
All three rules visible
Implements Section 10(13A) formula exactly — shows binding rule so you know which of the three constraints applies.
Metro city toggle
Metro / non-metro toggle handles 50% vs 40% rule with one click.
Annual figures for ITR
Shows annual exempt and annual taxable HRA — the numbers your Form 16 Part B will report.
When it's useful
Implements the exact Section 10(13A) formula with all three rules side by side.
Salaried Indians filing ITR
Claim the right HRA exemption based on the three-rule formula. Prevents leaving money on the table or triggering IT queries.
IT workers in multiple cities
Often rent in one city (Bangalore) while owning property elsewhere (Chennai). Run HRA here + home loan interest under Section 24 separately.
People comparing old vs new tax regime
HRA is a major deduction that disappears under the new regime. See the actual ₹ amount you'd lose to decide which regime is better for you.
Tenants negotiating with employers
Many employers under-quote HRA to fit a budget. See the exemption math and request HRA structure that maximizes your tax benefit.
Deeper context
Why HRA is usually the highest-value salaried-employee deduction
For urban renters, HRA can dwarf other tax-saving instruments.
Example: ₹50k basic + ₹20k HRA + ₹22k rent in Mumbai
Exempt HRA works out to ₹17k/month = ₹2.04 lakh/year tax-free. At 30% slab, that's ₹61,200 of tax saved annually — more than a full ₹1.5 lakh 80C investment would save.
Why you should ask HR to maximize HRA in your salary
If your total CTC allows it, shifting components from 'special allowance' (fully taxable) to HRA (up to ~50% tax-free for renters) creates savings. HR sometimes defaults to low HRA — you can ask for restructure.
Rent receipts are mandatory
Employers will often trust claims up to ₹3k/month without receipts, but any serious claim needs receipts. Keep month-by-month signed receipts AND bank transfer proofs to your landlord. Cash rent without receipts is audit bait.
Deeper context
HRA strategy mistakes
Three patterns that waste the HRA benefit.
Claiming rent you don't actually pay
Fake rent receipts (especially to parents or relatives) can attract Income Tax notice, especially if the claimed amount is high. If you claim rent to your parent, ensure they declare the rental income — otherwise the IT department's cross-check flags it.
Missing landlord PAN requirement
For rent over ₹1 lakh/year (₹8,334/month), landlord PAN is mandatory on Form 12BB. Without it, the HRA exemption is disallowed. Ask for PAN at lease signing, not at year-end when landlord might refuse.
Forgetting to claim when switching homes mid-year
If you moved, you'll have separate rent amounts for each period. Calculate HRA exemption month-by-month using the actual rent and basic that applied each month, rather than averaging. This calculator shows monthly; multiply for annual.
FAQ