HRA Calculator - Calculate House Rent Allowance in India

HRA Calculator helps you figure out how much tax exemption you can claim on rent paid just enter basic salary details to get accurate results instantly.

1. HRA Calculator

2. What is an HRA Calculator? An hra calculator is a valuable online tool that assists individuals in calculating the potential tax benefits associated with their House Rent Allowance (HRA). Under the Income Tax Act, HRA is partially exempt from taxation, subject to certain conditions and limits. The HRA deduction calculator simplifies the process of determining the amount of HRA exemption one can claim while filing income tax returns.

3. How is Exemption on HRA Calculated? The exemption on HRA tax calculation is accomplished using Rule 2A of the Income Tax Rules. It is based on three values, and the lowest of these three is the amount you can claim as tax-free under Section 10(13A). Here is how the HRA rebate calculation works: Actual HRA received from your employer 50% of your salary (Basic + Dearness Allowance) if you live in a metro city (like Delhi, Mumbai, Kolkata, or Chennai), or 40% if you live in a non-metro city Rent paid minus 10% of your salary (Basic + DA) You calculate all three, and whichever is the lowest, that is the HRA exemption you can claim. The rest of the HRA, if any, becomes taxable income.

4. How is HRA Taxed? If your total rent payments in a financial year exceed ₹1,00,000, you must provide your landlord's PAN while filing your income tax return. To make things clearer, let us look at an example to understand how much of your HRA (House Rent Allowance) can be exempted from tax. Example: Ayushi lives in Delhi (metro city) and pays ₹20,000/month as rent. She receives a Basic Salary of ₹40,000/month and DA of ₹5,000/month (which is part of her salary). Her employer gives her ₹90,000/year as HRA.

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