HRA Calculator
An HRA Calculator helps salaried individuals determine the tax-exempt portion of the House Rent Allowance (HRA) they receive from their employer. This tool is useful when you live in a rented home and want to calculate how much of your HRA is exempt under Section 10(13A) of the Income Tax Act.
How much of my HRA is exempt from tax?
The entire HRA received is not always fully exempt from tax. The least of the following three will be taken to exempt from tax:
- HRA received from your employer
- Actual rent paid minus 10% of salary
- 50% of basic salary for those living in metro cities and 40% of basic salary for those living in non-metro cities
The remainder of your HRA is added back to your taxable salary. Our calculator can easily help you figure out your HRA exemption
Documents Required for HRA Exemption Claim
Below is a list of documents required to claim HRA exemptions:
- Copy of your PAN card
- Copy of the landlord’s PAN card
- Rent receipts for the concerned financial year
- Copy of the rent agreement
How to Use the HRA Calculator
- Enter Basic Salary
- Enter HRA Received
- Enter Monthly Rent Paid
- Select City Type (Metro or Non-Metro)
- Click Calculate
- The calculator will show the Exempt HRA and Taxable HRA
Example
Let’s say: Ramesh lives in Non Metro City and has a monthly basic salary of ₹30,000/month in which HRA received is ₹12,000/month and Rent Paid is ₹10,000/month
Actual HRA = ₹12,000
40% of Basic = ₹12,000
Rent – 10% of Basic = ₹10,000 – ₹3,000 = ₹7,000
So HRA Exempted Yearly: ₹84000.00, Taxable HRA Yearly: ₹60000.00
FAQs
Who can claim HRA exemption?
Only salaried individuals receiving HRA and living in a rented house can claim the exemption.
Is PAN of landlord required?
Yes, if annual rent exceeds ₹1 lakh, the PAN of the landlord is required.
Can both husband and wife claim HRA for the same house?
Only one of them can claim HRA for the rented accommodation if both are paying rent jointly.
Can I claim HRA if I’m also claiming home loan deductions?
Yes, it’s possible. If you own a home and are repaying a home loan but currently reside in a rented property, you can still claim HRA. You’re eligible to enjoy both benefits to reduce your taxable income.
How does living in a metro city affect HRA exemption?
Living in a metro city allows you to claim a higher HRA exemption. The HRA exemption rules vary based on the city of residence. You can claim a 50% exemption in metro cities, whereas in non-metro cities, this percentage is capped at 40%.
Can I claim HRA by paying rent to my parents?
Yes, you can. The exemption is only available if your parents own the house and they declare the rental income provided by you in their income tax returns.