The house rent allowance exemption is the least of three tests, and which one binds changes with rent and city. All three are shown, so the answer is checkable rather than asserted.
Also called: house rent allowance exemption, hra tax saving calculator.
₹1,80,000 of your 3,00,000 HRA is exempt, so ₹1,20,000 is taxable. The binding limit is: rent less 10% of salary.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
The exemption is capped three ways at once and the smallest cap wins. The second test is the one people forget: rent counts only above ten percent of salary, so paying little rent relative to salary can leave the exemption at nothing however large the allowance is. The third differs by city, at half of salary in the four metros and forty percent everywhere else.
exempt = least of: HRA received, rent - 10% of salary, 50% of salary in a metro or 40% elsewhereEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
HRA exempt from tax₹1,80,000
Least of 3,00,000 / 1,80,000 / 3,00,000; the rent test binds
Open this exampleHRA exempt from tax₹2,40,000
Rent test gives 3,40,000, so the 40% cap of 2,40,000 binds instead
Open this exampleHRA exempt from tax₹0
boundary: rent of 50,000 is below 10% of a 6,00,000 salary, so test 2 is zero
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator