HRA Calculator
The HRA (House Rent Allowance) Calculator helps you calculate how much of your HRA is exempt from income tax. HRA is a component of salary provided by employers to meet rental accommodation expenses. In India, under Section 10(13A) of the Income Tax Act, a portion of HRA is tax-exempt, subject to conditions. The exemption is the minimum of: actual HRA received, 50% of basic salary (for metro cities) or 40% (for non-metro), or actual rent paid minus 10% of basic salary. This calculator helps you optimize your tax savings.
Formula
HRA Exemption = Minimum of: 1. Actual HRA received 2. 50% of Basic Salary (metro) or 40% (non-metro) 3. Rent Paid − 10% of Basic Salary Taxable HRA = Actual HRA − Exempt HRA
Example
If your basic salary is ₹50,000, HRA is ₹20,000, rent paid is ₹18,000, and you live in Mumbai (metro): 1. Actual HRA = ₹20,000 2. 50% of basic = ₹25,000 3. Rent − 10% of basic = ₹18,000 − ₹5,000 = ₹13,000 Exempt HRA = Minimum(₹20,000, ₹25,000, ₹13,000) = ₹13,000 Taxable HRA = ₹20,000 − ₹13,000 = ₹7,000
How to Use
- Enter your basic salary and HRA amount
- Input your actual monthly rent
- Select whether you live in a metro or non-metro city
- The calculator finds the minimum of the three exemption criteria
- Review your exempt and taxable HRA amounts
Frequently Asked Questions
What is HRA and who gets it?
HRA (House Rent Allowance) is a salary component provided by employers to help employees meet rental housing costs. It is typically part of the salary structure for salaried employees in India.
Do I need rent receipts to claim HRA exemption?
Yes, you need rent receipts and a rental agreement to claim HRA exemption. For rent above ₹1,00,000 per year, you also need the landlord's PAN number. Keep all documentation for tax filing.
Can I claim HRA if I live in my own house?
No. HRA exemption is only available if you live in rented accommodation. If you live in your own house or a company-provided accommodation, you cannot claim HRA exemption.
What is considered a metro city for HRA?
For HRA calculation, only Delhi, Mumbai, Kolkata, and Chennai are considered metro cities. In these cities, 50% of basic salary is used. In all other cities, 40% is used.
Can I claim both HRA and home loan deduction?
Yes, you can claim HRA exemption for rent paid AND home loan interest deduction (Section 24) simultaneously, as long as the rented house and the owned house are in different cities, or you have a valid reason for not living in your own house.