HRA Exemption Calculator
How much of your HRA is actually tax-free?
HRA exemption (annual)
0
the tax-free portion
Taxable HRA (annual)
0
added to your taxable income
Total HRA received (annual)
0
before exemption
Tax saved by the exemption
₹0
per year, at your slab (old regime only)
The tax-free portion is the LOWEST of three amounts: actual HRA received, rent paid minus 10% of Basic+DA, and 50% of Basic+DA in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere — set the city slider to match. HRA exemption is only available under the old tax regime; it does not apply if you have opted into the new regime — compare regimes in the Income Tax Calculator before assuming the saving. If annual rent exceeds ₹1L, you must give your employer the landlord's PAN; rent above ₹50,000/month also requires you to deduct 2% TDS under §194-IB when paying an individual landlord.
Frequently asked questions
Should I choose the old tax regime or the new one?
It depends on how many deductions and exemptions you actually claim (80C, HRA, home loan interest, and similar). If your eligible deductions are substantial, the old regime often works out cheaper; if you claim few or none, the new regime's lower slab rates usually win. Compare both using your real numbers rather than assuming -- this calculator does that comparison directly.Read more: HRA Exemption Calculator: How Much Rent Is Tax-Free?
What counts as a tax-saving investment?
Under the old regime, Section 80C covers instruments like PPF, ELSS mutual funds, EPF, life insurance premiums, and 5-year tax-saving FDs, up to the annual 80C cap. The new regime doesn't offer most of these deductions, which is the core trade-off between the two regimes.Read more: Rent in the City, Buy Farmland, Pay No Tax: The Advice That Raises Your Tax Bill
How is capital gains tax calculated on mutual funds/stocks?
It depends on the holding period and asset type. Equity held over 12 months is taxed as long-term capital gains (with an annual exemption threshold); held less than 12 months, it's short-term and taxed differently. Debt funds follow their own, separate rules. Always check the current thresholds, since these are periodically revised.Read more: Tax Deferment Techniques in India: What the Wealthy Use and Nobody Teaches You
What is TDS and when does it apply?
TDS (Tax Deducted at Source) is income tax deducted upfront by whoever pays you -- an employer, a bank paying FD interest above a threshold, and similar -- and deposited with the tax department on your behalf. It's an advance payment toward your total tax liability, not an extra tax, and is adjusted when you file your return.Read more: A ULIP Is an Investment Fund Wearing an Insurance Costume — Here’s Every Charge
Estimates only, not financial advice. See our Disclaimer.
