HRA Exemption Calculator
House Rent Allowance is exempt only up to the lowest of three limits. This shows all three, so you can see which one is capping you.
Why the answer is almost never the full HRA
People assume the HRA line in their salary slip is tax-free. It is exempt only up to the lowest of three figures, and for most salaried people in Bhopal it is the third one that does the capping.
- The HRA you actually received. You cannot exempt more than you were paid.
- Rent paid minus 10% of salary. If your rent is low relative to salary this drops fast, and if rent is under 10% of salary the exemption is nil.
- 50% of salary in a metro, 40% everywhere else. Bhopal and Indore are non-metro, so the ceiling here is 40%. This catches out people who move from Delhi or Mumbai and expect the same exemption.
Salary here means basic pay plus dearness allowance, not your full CTC. Using CTC inflates all three numbers and produces an exemption you cannot defend if it is questioned.
Common questions
A number is not a filing
This tool gives you the figure. Getting the filing right — the correct form, the documents, the deadline, the department — is the part that costs people money when it goes wrong. Send us your case and we will tell you what actually applies to you.
Ask Webdoid on WhatsAppRelated on this site
Other pages on the same subject, in case one of these is what you actually came for.