Question 1

How is HRA exemption calculated?

Accepted Answer

HRA exemption is the minimum of three amounts: (1) Actual HRA received from your employer, (2) Rent paid minus 10% of basic salary, and (3) 50% of basic salary if you live in a metro city, or 40% if non-metro. The lowest of these three is your tax-exempt HRA amount.

Question 2

Which cities are considered metro for HRA?

Accepted Answer

For HRA exemption purposes, metro cities typically include Delhi, Mumbai, Kolkata, and Chennai. If you live in one of these cities, you get 50% of basic salary as the third component of the HRA calculation. For all other cities, it is 40% of basic salary.

Question 3

Can I claim HRA if I pay rent to family?

Accepted Answer

You can claim HRA if you pay rent to your parents, but not to your spouse. You need to have a valid rental agreement and proof of rent payments (bank transfers, receipts). If annual rent exceeds a certain threshold, you also need to provide the landlord's tax identification number.

Component	Details
Component 1	Actual HRA received from employer
Component 2	Rent paid minus 10% of basic salary (annual)
Component 3 (Metro)	50% of basic salary (for Delhi, Mumbai, Kolkata, Chennai)
Component 3 (Non-Metro)	40% of basic salary (for all other cities)
HRA Exemption	Minimum of the three components above
Taxable HRA	HRA received minus HRA exemption

HRA Calculator

HRA Details

Track your rent and salary components

How It Works

Related Free Calculators