HRA Calculator

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HRA Calculator – Calculate Your House Rent Allowance

House Rent Allowance (HRA) is a salary component provided by employers to help employees cover their rental expenses. It also offers tax benefits under Section 10(13A) of the Income Tax Act.

Use our HRA Calculator to determine how much HRA you can claim as a tax deduction.

What is House Rent Allowance (HRA)?

HRA is a part of an employee's salary that helps them pay for house rent. The amount received as HRA is partially or fully exempt from income tax based on certain conditions.

To claim HRA benefits, you must live in a rented house and pay rent to the landlord.

How is HRA Calculated?

HRA exemption is calculated based on the least of the following three amounts:

  • Actual HRA received from the employer.
  • 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities).
  • Rent paid – 10% of basic salary.

Example of HRA Calculation

Let's assume an employee's salary structure is as follows:

  • Basic Salary = ₹50,000 per month
  • HRA Received = ₹20,000 per month
  • Rent Paid = ₹18,000 per month
  • City = Mumbai (Metro City)

Now, the three HRA exemption components are:

  • Actual HRA Received = ₹20,000
  • 50% of Basic Salary = ₹25,000
  • Rent Paid – 10% of Basic Salary = ₹18,000 - ₹5,000 = ₹13,000

HRA Exemption = Minimum of (₹20,000, ₹25,000, ₹13,000) = ₹13,000

The remaining ₹7,000 (₹20,000 - ₹13,000) is taxable.

Benefits of Using an HRA Calculator

  • Quick Calculation: Get accurate HRA tax exemption details instantly.
  • Financial Planning: Helps in better salary and tax planning.
  • Understand Taxable & Non-Taxable HRA: Know how much of your HRA is taxable.
  • Eligibility Check: Verify if you qualify for HRA tax benefits.

Who is Eligible for HRA Tax Exemption?

To claim HRA tax benefits, you must meet the following conditions:

  • You should be salaried and receive HRA as part of your salary.
  • You must live in a rented house and pay rent.
  • You should not own a house in the same city where you work.
  • If the annual rent exceeds ₹1,00,000, you must provide the landlord’s PAN number.

Documents Required for HRA Tax Exemption

  • Rent receipts with the landlord's details.
  • Rental agreement (if applicable).
  • Landlord’s PAN card (if annual rent exceeds ₹1,00,000).

Frequently Asked Questions (FAQs)

No, HRA tax exemption is only available to salaried employees. However, self-employed individuals can claim rent deductions under Section 80GG.

No, HRA tax exemption is only applicable if you pay rent for a house you do not own.

You need to provide valid rent receipts signed by your landlord. Ensure the receipts include landlord details and are stamped if required.

Yes, you can claim HRA by paying rent to your parents, but they must declare the rent as income in their tax returns.

Conclusion

Use our HRA Calculator to easily determine how much of your House Rent Allowance is tax-exempt. Proper planning can help you maximize tax savings while managing your rental expenses efficiently.