All you need to know about HRA calculator

Paying rent and not sure how much tax you can actually save with House Rent Allowance (HRA)? Quicko’s HRA calculator shows you, in seconds, how much of your HRA is exempt and how much is taxable based on your salary, rent and city.

HRA is a key part of a salaried employee’s CTC in India, and under the old tax regime it can significantly reduce your taxable income when calculated correctly.

What is HRA?

House Rent Allowance (HRA) is a salary component paid by the employer to help employees meet their house rent expenses. Under Section 10(13A) read with Rule 2A, a portion of this allowance can be claimed as exempt from tax if you stay in rented accommodation and meet the prescribed conditions.

HRA exemption is available only under the old tax regime; if you opt for the new tax regime (Section 115BAC), the full HRA becomes taxable. The exemption amount depends on factors such as your basic salary, dearness allowance considered for retirement benefits, HRA received, rent paid and whether you live in a metro or non-metro city.

What is the Quicko HRA calculator?

The Quicko HRA calculator is an online tool that helps you compute the exempt and taxable portion of HRA in a few clicks. It uses the formula prescribed under the Income Tax Act, so you do not have to do any manual calculations or worry about mistakes.

You simply enter your Basic Salary, DA Received, HRA Received, Rent Paid and select whether you live in a metro (i.e. Delhi, Mumbai, Kolkata, Chennai) or non-metro city. Then, in seconds, you see how much HRA is tax-exempt and how this changes your overall tax outgo under the old tax regime.

Old vs new tax regime

Many salaried taxpayers are unsure if HRA still helps them save tax under the new regime. Under the old tax regime, you can claim HRA exemption, which reduces your taxable salary.

Under the new tax regime, most exemptions and deductions (including HRA) are not available, so your entire HRA becomes taxable, though slab rates may be lower

How HRA exemption is calculated?

For salaried employees covered by Section 10(13A), the exempt HRA is the lowest of:

• Actual HRA received from your employer (HRA Received)

• Rent paid minus 10% of salary (Basic Salary + DA Received)

• 50% of salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% for non-metros

Any HRA received above this amount becomes taxable and must be reported as part of your salary income in the ITR. If you do not receive HRA but still pay rent, you may explore the deduction under Section 80GG (requires Form 10BA), subject to limits and conditions.

When can you claim HRA?

You can claim HRA exemption only if all these conditions are met:

• You are a salaried employee and HRA is part of your salary structure

• You live in a rented house and actually pay rent for your accommodation

• Rent paid exceeds 10% of your salary (Basic Salary + DA Received used for this calculation)

You should also keep proof of rent payment, such as a rent agreement, rent receipts (with landlord's name, PAN if rent > ₹1 lakh/year, revenue stamp) or bank statements, especially if annual rent exceeds ₹1 lakh (landlord PAN required). If you pay rent to parents, HRA can generally be claimed if they are the legal owners, there is a genuine rental agreement, rent receipts and bank.

How to use the Quicko HRA calculator?

Once you enter these values, the calculator automatically applies the three-condition test for HRA exemption and instantly shows exempt HRA, taxable HRA and estimated tax saving under the old tax regime.

Benefits of using the Quicko HRA calculator

Using a dedicated HRA calculator on Quicko gives you:

• Accurate HRA calculation: The tool applies the law-backed formula every time, reducing the chance of manual errors in spreadsheets or on paper.

• Quick scenario testing: Change rent, salary, city type, or regime choice and instantly see how your HRA exemption changes.

• Better tax planning: Seeing the tax-exempt HRA helps you decide between the old and new regimes, discuss salary structuring with your employer and plan housing decisions more confidently (even if you own a house elsewhere).

• Easy filing and reporting: A detailed HRA breakup makes it simpler to match with Form 16 and report correctly in your ITR — even if not claimed through your employer.

Use the Quicko HRA calculator above to get a clear breakup of exempt and taxable HRA before you file your return, so there are no surprises or penalties for mismatch. Once you know your HRA benefit under old vs new regimes, pick what saves you most and finish ITR filing on Quicko seamlessly.