HRA exemption calculator and rent receipt generator

Why this one is different

Common questions

How is HRA exemption calculated?

As the least of three figures: the HRA actually received, the rent paid less 10 percent of basic pay plus DA, and 50 percent of that salary in a metro or 40 percent elsewhere. Whichever is smallest is your exemption.

Is Mumbai a metro for HRA?

Yes. Mumbai, Delhi, Kolkata and Chennai are treated as metros, so the 50 percent limb applies rather than 40 percent.

Do I need my landlord's PAN?

Once annual rent passes one lakh rupees, yes. If your landlord does not have a PAN, a signed declaration giving their name and address is used instead.

Can I claim HRA under the new tax regime?

No. The exemption is available only under the old regime, so the calculation is worth doing only if you are on it or comparing the two.

Is HRA exemption 50 percent of basic salary?

Not on its own. Fifty percent of basic pay plus DA is one of three limbs, and the exemption is the smallest of the three: that figure, the HRA actually received, and rent paid less 10 percent of basic. In a metro such as Mumbai the limb is 50 percent; elsewhere it is 40. The calculator works all three and shows which one binds.