HRA Exemption Calculator
Calculate your HRA tax exemption amount legally. Optimize your rent payments to maximize tax savings under the Old Tax Regime.
Real-World Scenarios
Living in Mumbai, Delhi, or Bangalore allows for higher HRA claims (up to 50% of basic salary).
For other cities, the limit is 40% of basic. Ensure you have valid rent receipts and PAN of the landlord.
Professional Strategy Insights
- The HRA Logic: Exemption is the MINIMUM of: 1) Actual HRA received, 2) 50%/40% of Basic, or 3) Rent paid minus 10% of Basic.
- PAN of Landlord: If your annual rent exceeds ₹1 Lakh, the PAN of the landlord is mandatory. Don₹t miss this, or your HR will deduct full tax.
Frequently Asked Questions
Can I claim HRA if I live with parents?
Yes, provided you pay them rent via bank transfer and they declare it as rental income in their tax returns.
Is HRA available in the New Regime?
No. HRA exemptions are strictly for the Old Tax Regime. This is a critical factor when choosing your regime.
Mathematical Methodology
At eCalcy, transparency is our core principle. This TAX calculator utilizes the Step-by-step Income Tax Slab application including Sec 87A rebate and 4% Health & Education Cess. We account for compounding frequencies (Quarterly for FD, Monthly for SIP/EMI) to ensure 99.9% accuracy compared to official bank statements.
Financial Disclaimer
Calculations provided by eCalcy are estimates for educational purposes only. They do not constitute financial advice. Fixed deposit rates and mutual fund returns are subject to market risks and bank policy changes.
Always consult a SEBI-registered advisor or certified CA before making investment decisions.
eCalcy Editorial Team
Verified ExpertFinance Research & Editorial Board, eCalcy
Financial Technology Specialists · RBI, SEBI & IRS Verified Calculators
Reviewed: April 2026
Every formula and editorial guide on eCalcy is reviewed by the eCalcy Editorial & Research Board and cross-referenced against RBI circulars, SEBI regulations, and the Income Tax Department guidelines. eCalcy is NOT a SEBI-registered investment advisor — all tools are educational planning aids only.