HRA Calculator
Calculate your House Rent Allowance (HRA) exemption and taxable amount as per Income Tax rules.
HRA Calculator – House Rent Allowance Exemption Calculator
A House Rent Allowance (HRA) Calculator helps salaried individuals calculate the portion of HRA that is exempt from income tax under the Income Tax Act.
HRA is a component of salary paid by employers to employees who live in a rented house. The tax exemption on HRA depends on factors such as salary structure, rent paid, and the city of residence.
What Is an HRA Calculator?
An HRA Calculator is an online tool that estimates how much of your HRA is tax-exempt and how much is taxable based on standard income tax rules.
- Eligible HRA exemption amount
- Taxable portion of HRA
- Net HRA benefit for income tax calculation
This calculator follows commonly used HRA exemption rules applicable to salaried employees in India. Actual exemption may vary based on salary structure and tax assessment.
How Does the HRA Calculator Work?
The HRA Calculator estimates exemption based on the lowest of the following:
- Actual HRA received from employer
- Rent paid minus 10% of basic salary
- 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities)
Note: The calculator provides an estimate and does not replace professional tax advice.
HRA Calculation Example
Let’s understand how HRA exemption is calculated using a simple example.
- Basic Salary: ₹50,000 per month
- HRA Received: ₹20,000 per month
- Rent Paid: ₹18,000 per month
- City of Residence: Metro city
HRA exemption is calculated as the lowest of:
- Actual HRA received: ₹20,000
- Rent paid − 10% of basic salary: ₹13,000
- 50% of basic salary (metro): ₹25,000
HRA Exempt Amount: ₹13,000 per month
Result: ₹13,000 of HRA is tax-free, while the remaining amount is taxable.
Frequently Asked Questions (FAQs)
What is HRA?
House Rent Allowance (HRA) is a salary component paid by employers to employees to cover rental housing expenses.
Who can claim HRA exemption?
Salaried individuals who receive HRA and live in a rented house can claim HRA exemption under income tax rules.
Is HRA exemption available to self-employed individuals?
No. HRA exemption is available only to salaried employees. Self-employed individuals may claim rent deduction under other income tax provisions.
Does city type affect HRA exemption?
Yes. For metro cities, up to 50% of basic salary is considered, while for non-metro cities, the limit is 40%.
Can I claim HRA without rent receipts?
For tax filing purposes, rent receipts or proof of rent payment may be required, especially for higher exemption claims.
Is HRA Calculator result exact?
The calculator provides an estimate based on standard rules. Actual exemption may vary during income tax assessment.