How to Use This Tool — Step by Step
- Enter your Annual Basic Salary.
- Input the actual HRA received from your employer.
- Enter the total annual rent you pay.
- The tool automatically calculates the minimum of the three exemption rules.
Key Benefits & Features
- ✓ Metro Support: Pre-set for Mumbai (50% basic rule).
- ✓ Accurate Math: Follows IT Act Section 10(13A) exactly.
- ✓ Instant Results: See taxable vs exempted HRA instantly.
- ✓ No Data Stored: Private and secure calculation.
Real-World Use Cases
- 📌Financial planning
Frequently Asked Questions
Is Mumbai considered a Metro for HRA?
Yes, for Income Tax purposes, Mumbai is one of the four metro cities (Delhi, Mumbai, Kolkata, Chennai) where 50% of basic salary is considered for HRA exemption.
What is the HRA exemption formula?
It is the minimum of: 1. Actual HRA received, 2. 50% (Metro) or 40% (Non-metro) of basic salary, 3. Rent paid minus 10% of basic salary.
Can I claim HRA if I live in my own house?
No, HRA exemption can only be claimed if you are actually paying rent for your accommodation.
Do I need rent receipts for HRA?
Yes, to claim HRA exemption from your employer, you generally need to provide rent receipts and the PAN of your landlord if rent exceeds Rs.1 Lakh per year.
⚠️ Tax Disclaimer
HRA exemption rules are subject to the Income Tax Act. Always consult a tax professional for final tax filing.
HRA Rules in Maharashtra
In Maharashtra, employees in Mumbai benefit from the 50% basic salary rule for HRA exemption. If you are living in other cities like Pune or Nagpur, the 40% rule applies.