What is HRA Exemption Calculator?
HRA Exemption Calculator helps you compare the three limits used to estimate an eligible HRA exemption.
The main result is potential HRA exemption, with a breakdown of taxable HRA. The formula, example and assumptions below explain how to interpret it.
How to use HRA Exemption Calculator
Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.
- Gather annual eligible salary: basic + eligible DA / commission (₹), annual HRA received (₹), annual rent paid (₹) and HRA city category. Use values from the same situation or reporting period.
- Replace the example annual eligible salary: basic + eligible DA / commission with your own value, then complete the other fields. Check the displayed units and each selected option.
- Select Calculate and read potential HRA exemption with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
- Enter annual eligible salary: basic + eligible DA / commission in ₹, at least 0. Decimals are accepted.
- Enter annual HRA received in ₹, at least 0. Decimals are accepted.
- Enter annual rent paid in ₹, at least 0. Decimals are accepted.
- Choose HRA city category from Other cities — 40% and Delhi, Mumbai, Kolkata or Chennai — 50%.
HRA Exemption Calculator: a worked example
With the inputs below, the result is ₹1,80,000 (potential HRA exemption). Follow the example, then replace these illustrative values with your own.
| Input or output | Example value |
|---|---|
| Annual eligible salary: basic + eligible DA / commission (₹) | ₹6,00,000 |
| Annual HRA received (₹) | ₹2,40,000 |
| Annual rent paid (₹) | ₹2,40,000 |
| HRA city category | Other cities — 40% |
| Potential HRA exemption | ₹1,80,000 |
| Taxable HRA | ₹60,000 |
Understanding the HRA Exemption result
Read potential HRA exemption alongside taxable HRA. These describe different parts of the same calculation.
Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.
- Example Taxable HRA: ₹60,000
HRA Exemption Calculator: assumptions and common mistakes
A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.
- Old-regime exemption, subject to actual eligibility and documentation. Use consistent periods for all amounts; split periods when salary, rent or city changes.
- Use the rate and eligibility rules that apply to your transaction. An example rate does not establish a tax liability or entitlement.
For wider guidance, visit Income Tax Department. The formula and scope of this specific tool are stated on this page.
