How to Use Our Calculator

5 Easy Steps

  1. Enter Basic Salary

    Input your monthly basic salary (pre-rent deduction). Example: ₹60,000 for Mumbai professionals

  2. Add HRA Received

    Enter the HRA component from your payslip. Typically 40-50% of basic salary

  3. Input Actual Rent

    Enter monthly rent paid. Must be >10% of basic salary for exemption

  4. Select City Type

    Choose metro (Mumbai/Delhi/Kolkata/Chennai) or non-metro for accurate limits

  5. Review Results

    Get instant exempt HRA amount with CBDT-compliant breakdown

Real Calculation Example

Scenario: Bangalore Employee

Basic Salary: ₹75,000/month
HRA Received: ₹30,000/month
Actual Rent: ₹22,000/month

Exempt HRA: ₹17,500/month

Breakdown:
1. Rent - 10% Basic = ₹22,000 - ₹7,500 = ₹14,500
2. 40% of Basic = ₹30,000
3. HRA Received = ₹30,000
Minimum of these = ₹14,500

Required Documents

  • Rent agreement copy (mandatory)
  • Landlord's PAN card copy (if rent >₹50,000/month)
  • Bank transfer records for rent payments
  • Form 16 for verification

Maintain documents for 5 financial years as per CBDT rules

Important Notes

  • Exemption valid only for rented accommodation
  • Not applicable for owned properties
  • Follows Section 10(13A) of Income Tax Act
  • Updated with AY 2024-25 guidelines

This guide is for educational purposes. Actual tax liability may vary based on ITR filing and documentation.