HRA Calculator is free and simple tool that will help you to caluclate your HRA (House Rent Allowance). This web based HRA calculator is made for easy to use and calculate the allownces.
HRA value helps salaried taxpayers to claime HRA exemption to reduce taxable in under Section 10(13A) of the Income Tax Act.
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HRA Calculator
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Table of Contents
What is House Rent Allowance (HRA)?
House Rent Allowance (HRA) is an allowance that is given by employers to employees for their rental expenses. As HRA is part of employees salary, some of portion may be exempt from tax if they are living in a rented house.
The exempted HRA portion depends on many factors like :-
- Employees Basic Salary + Dearness Allowance (DA)
- HRA received from your employer
- Rent paid minus 10% of salary
- Whether you live in a metro (Delhi, Mumbai, Kolkata, Chennai) or non-metro city
Why Use an House Rent Allowance Calculator Online?
Manually applying the HRA exemption formula can be time-consuming and error-prone. Our HRA Calculator online:
- Gives instant and accurate results
- Works for both metro and non-metro cities
- Provides a detailed breakdown of calculation
- Helps you plan taxes better before filing ITR
- Is free and mobile-friendly
By using this tool, you save time, avoid mistakes, and always stay compliant with the latest tax rules.
How to Calculate HRA calculator
The exemption is calculated as the minimum of:
- Actual HRA received from the employer
- 50% of salary (Basic + DA) if living in a metro city, 40% of salary if living in a non-metro city
- Rent paid – 10% of salary
The least of the above three is exempt from tax. Any extra HRA received is fully taxable.
Key Rules for Claiming HRA
- You must be actually paying rent to claim HRA exemption.
- If rent paid exceeds ₹1,00,000 annually, you need the PAN of your landlord.
- You can claim HRA even if you live with your parents, provided you pay rent to them with receipts and agreement.
- HRA cannot be claimed if you live in your own house without paying rent.
- You can claim both HRA exemption and home loan interest deduction if conditions are satisfied.
For more info and calculation Visit official website of Income tax india
Conclusion
HRA exemption is one of the most effective tax-saving benefits available to salaried employees. However, since it depends on multiple conditions, manual calculation can be tricky. Our free HRA Calculator online simplifies the process by instantly computing the exempt and taxable HRA based on your salary, rent, and city type.
FAQS
Can I claim HRA if I don’t get HRA from my employer?
No, you cannot claim HRA exemption if your salary does not include an HRA component. However, you may still claim Section 80GG deduction for rent paid.
Do I need rent receipts to claim HRA?
Yes, rent receipts are often required by employers for HRA exemption. For income tax return filing, keep rent receipts and rent agreement as proof.
Can I claim HRA for a home rented from my parents?
Yes, but you must actually pay rent to your parents, and they need to show rental income in their ITR. Proper documentation is essential.
Is HRA exemption available if I live in my own house?
No, you cannot claim HRA exemption if you are staying in your own property without paying rent.
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