HRA Calculator India 2025 — House Rent Allowance Exemption 2026 –27
New Regime vs Old Regime · HRA · 80C · 80D · NPS · Surcharge · Monthly Take-Home
HRA exemption is one of the largest tax benefits for salaried employees — metro city residents can claim 50% of basic salary as HRA exemption. But the actual exempt amount is the minimum of: (a) actual HRA received, (b) rent paid minus 10% of salary, (c) 50%/40% of basic. Claim too much = tax notice. This calculator finds your exact HRA exemption for any rent and salary combination.
💼 Salary Details
📋 Old Regime Deductions
▲ HideFill deductions to compare New vs Old regime accurately
Annual Savings
📅 Monthly Salary Breakup
| Component | Monthly (₹) | Annual (₹) | % of CTC |
|---|---|---|---|
| 💼 Gross CTC | ₹1,00,000 | ₹12,00,000 | 100.0% |
| 📊 Income Tax | −₹5,927 | −₹71,126 | 5.9% |
| 🏥 PF (Employee) | −₹1,800 | −₹21,600 | 1.8% |
| 🏙️ Professional Tax | −₹200 | −₹2,400 | 0.2% |
| 💰 Net Take-Home | ₹94,073 | ₹11,28,874 | — |
📐 Income Tax Calculation — New Regime FY 2025–26
📖 Real Life Examples
HRA ₹1.2L, 80C ₹1.5L. Deductions total ~₹3.5L.
New: Std ₹75K only. Old: 80C+80D+NPS = ₹2.25L.
HRA ₹2.4L, 80C ₹1.5L, Home Loan ₹2L, NPS ₹50K.
Surcharge 10% applies. New regime limits surcharge to 25% (old: 37%) above ₹5Cr.
Frequently Asked Questions
What is the HRA exemption formula under Section 10(13A)?
HRA exempt = MINIMUM of: (A) Actual HRA received. (B) Rent paid − 10% of [Basic + DA]. (C) 50% of Basic+DA (metro: Delhi, Mumbai, Chennai, Kolkata) or 40% (non-metro). Remaining HRA after exemption is taxable. Example: Basic ₹50K, HRA ₹25K, Rent ₹28K. (A) ₹25K. (B) ₹28K−₹5K=₹23K. (C) ₹25K. Exempt = ₹23K.
Can I claim HRA if I am paying rent to parents?
Yes — legally valid if: (1) Rent agreement exists. (2) Actual bank transfer of rent (not cash). (3) Parent must show rental income in their ITR. (4) If property is in parent's name, this is straightforward. (5) You cannot claim HRA if you co-own the property. Many families use this to legitimately transfer income to lower-taxed parent.
What documents are needed to claim HRA?
Submit to employer: rent agreement + rent receipts (monthly) for the year. Rent above ₹1L/year: mandatory to provide landlord's PAN. Keep: bank statements showing rent transfers, rent receipts signed by landlord. During ITR filing: declare HRA details, no document upload needed but keep proof for scrutiny (7 years recommended).
Can I claim both HRA and home loan deduction?
Yes — if your rented accommodation and owned property are in different cities. Example: working in Mumbai (renting), own house in Delhi (family lives there or rented out). Claim: HRA on Mumbai rent + 80C (principal) + 24(b) (interest up to ₹2L) on Delhi home loan. Document both with different addresses to avoid scrutiny.
📌 Key Takeaways — HRA Calculator India 2025 2026–27
- ✅ New Regime is now the default for FY 2025–26. Opt for Old Regime only if deductions > ₹3.75L
- ✅ Zero tax in New Regime if income ≤ ₹7.75L (₹7L income + ₹75K std deduction + 87A rebate)
- ✅ Old Regime wins if HRA + 80C (₹1.5L) + 80D + NPS + Home Loan all fully claimed
- ✅ Standard deduction: ₹75,000 (New) vs ₹50,000 (Old) — Budget 2025 change
- ✅ NPS extra ₹50,000 under 80CCD(1B) reduces tax by ₹15,000 (30% slab)
- ✅ Surcharge: 10% on income ₹50L–₹1Cr · 15% on ₹1Cr–₹2Cr · 25% on ₹2Cr–₹5Cr
- ✅ Professional Tax up to ₹2,500 deductible under both regimes
- ✅ 4% Health & Education Cess applies on total tax (including surcharge)