HRA exemption calculator
Paying ₹25,000/mo rent in a metro on a ₹12L CTC, ₹1,92,000 of your HRA is tax-exempt per year. The exemption exists only in the old regime; flip to the in-hand tool to see if it beats the new regime's flat deduction.
The least of three rules wins
The lowest of the three rules is your exemption. Rent above ₹1L/yr needs the landlord's PAN. Metro = Delhi, Mumbai, Kolkata, Chennai for this rule; Bengaluru counts as non-metro, a common overpayment trap.
Frequently asked questions
The least of three amounts: actual HRA received, rent paid minus 10% of basic, and 50% of basic in a metro (40% elsewhere). The default inputs make that ₹1,92,000 a year.
No. For the HRA rule, metro means only Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Pune and Hyderabad take the 40% limit, a common miscalculation.
No. HRA exemption exists only in the old regime; flip to the in-hand calculator to see whether your rent makes the old regime worth it.
Yes, with a genuine rent agreement and bank-transferred rent that they declare as income. Rent above ₹1 lakh a year also needs the landlord's PAN.