HRA Calculation Example — Step-by-Step
HRA exemption = minimum of 3 values: (1) Actual HRA received = ₹3L, (2) 50%/40% of basic = ₹3L, (3) Rent − 10% basic = ₹2.4L − ₹60K = ₹1.8L. Result: ₹1.8 lakh exempt, ₹1.2 lakh taxable.
HRA Exempt (Tax-Free)
₹1,80,000
HRA Taxable
₹1,20,000
HRA exemption = minimum of: (1) HRA received, (2) 50%/40% of basic for metro/non-metro, (3) Rent paid minus 10% of basic. Only applicable under Old Tax Regime.
Weekly Indian rate update
RBI repo, top FD rates, tax deadlines. Free. No spam.
Calculated with CalcHub
Common questions about HRA Calculation Example — Step-by-Step
What are the 3 conditions for HRA exemption?
HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) 50% of basic salary for metro cities or 40% for non-metro, (3) Actual rent paid minus 10% of basic salary. You must pay rent and have HRA as part of your salary structure.