How this calculator works
Use salary, HRA and rent from the same period, splitting the year if salary, rent or city status changes. Salary includes basic pay, qualifying dearness allowance and qualifying turnover-based commission. The exemption is the smallest of HRA received, rent above 10% of salary and the city-based salary limit. It cannot be negative. Selecting an ineligible regime returns zero exemption. This computes the allowance split, not final income tax.
Formula
Exempt HRA = max(0, min(HRA received, rent - 10% of salary, city fraction x salary)). City fraction = 50% for the four specified metros; otherwise 40%. Taxable HRA = HRA - exemption.
Worked example
With INR 600,000 salary, INR 240,000 HRA and INR 300,000 rent outside the four metros, all three limits are INR 240,000, so all HRA is exempt. If rent is INR 30,000, there is no exemption.
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Frequently asked questions
Is Bengaluru a metro for this rule?
The 50% list used here is Delhi, Mumbai, Kolkata and Chennai; other cities use 40%.
What if I pay no rent?
Rent above 10% of salary is zero, so the calculated HRA exemption is zero.
Should I enter monthly or yearly amounts?
Either works if every amount covers exactly the same period and the applicable conditions stay unchanged.