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HRA Calculator

Calculate your House Rent Allowance tax exemption.

Effective Returns:

HRA Received₹1,08,000
Exempted HRA₹1,08,000
Taxable HRA₹0

Input fields:

Basic Salary + DA (Annual)
₹
HRA Received (Annual)
₹
Total Rent Paid (Annual)
₹
Do you live in Delhi, Mumbai, Kolkata or Chennai?

Explanation

HRA, or House Rent Allowance, is the salary component given by your employer to cover your housing needs. To calculate the HRA deduction you need to consider 4 things: - Your Salary - HRA received - Actual rent paid - City you live in The final HRA exemption is the smallest of: - HRA received from your employer - Actual rent paid - 10% of (Basic + DA) - 50% of (Basic + DA) in metro cities / 40% if you're in a non-metro city Metro cities include Mumbai, Delhi, Chennai, and Kolkata.

Formula

MIN(HRA received, Actual rent paid - 10% of (Basic + DA), IF(Metro city, 50% of (Basic + DA), 40% of (Basic + DA)))

How Our Calculator Can Help You?

a) Calculate HRA exemption that you can get b) Understand HRA exemption limit and negotiate salary package accordingly c) Know the impact of HRA on your income tax liability d) Understand the HRA eligibility, documentation, and tax rules.
Amount

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FAQs

- Be a salaried professional. - Living in rented accommodation is a must. If your own place is nearby, you need to justify why you need the rented accommodation. - Keep those rent receipts and rent agreement safe; they are your golden ticket. - If your annual rent exceeds Rs 1 lakh (which it usually does), you need the landlord's PAN card.

You hand over rent receipts to your employer when asked or take charge yourself while filing taxes, but make sure that you claim it!

Under Section 10(13A) rule no 2A - that's where the HRA exemption happens.

No HRA in your salary structure? No problem! You can still claim a deduction on the rent paid under section 80GG. Even self-employed professionals can use 80GG. This HRA exemption calculator is however, not meant for 80GG deductions.

50% of the employee's salary is the threshold for HRA tax exemption if you live in any of the Metro cities of India and 40% for non-metropolitan cities. The exempted HRA is the minimum of: - HRA received from your employer - Actual rent paid minus 10% of (Basic + DA) - 50% of (Basic + DA) in metro cities / 40% if you are in a non-metro city

If your parents own the property, you can pay rent to your parents and claim an HRA deduction after entering into a proper agreement with parents and paying them the rental sum. However, if the employee lives with their parents in rented housing and the parents pay the rent, the employee cannot claim the HRA deduction.

If your annual rent payment is less than Rs 100,000, you can claim HRA without a landlord PAN. When your rent crosses the Rs 100,000 threshold, you must get your landlord's PAN.

There are no restrictions to claiming HRA and interest on a home loan at the same time, even if both residences are in the same city. However, there should be enough reason for you to leave the house you purchased and rent another.

In order to be eligible for the HRA exemption, the employer will need to receive documentation such as rental agreement and rent receipts. In the event that the annual rent payment exceeds Rs 1 lakh, the home owner's PAN must be provided.