Your salary and rent

Monthly figures, as on your payslip and rent agreement.

₹
₹0₹5 L
₹
₹0₹2.5 L
₹
₹0₹2.5 L
Dearness allowanceOnly the part that counts for retirement benefits₹
Months you paid rentIn this financial yearmo

Your HRA exemption

50% city limit applies in Bengaluru. Old tax regime only.

Tax-free HRA₹1,56,000for 12 months
Taxable HRA₹84,000added to your taxable salary
The lowest of these three is exemptSalary here means basic plus DA.
  • HRA you receive₹2,40,000
  • Rent paid minus 10% of salaryApplies₹1,56,000
  • 50% of salary₹3,00,000
Estimated tax savedAt your highest slab, including 4% cess
₹48,672
  • At a rent of ₹25,000 a month, your exemption would reach its maximum of ₹20,000 a month.
  • Your rent is over ₹1 lakh a year, so your employer will ask for your landlord's PAN.
  • HRA is fully taxable in the new regime. Compare both on the income tax calculator before choosing.

Estimates only, not financial advice.HRA exemption calculator by BlogBanking