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HRA Exemption Calculator

Easily calculate your House Rent Allowance tax benefits and understand how it impacts your take-home salary.

HRA CALCULATOR

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Understanding Your House Rent Allowance (HRA)

House Rent Allowance (HRA) is a common component of a salaried individual&aposs compensation package in India. It&aposs an allowance paid by your employer to help you cover accommodation expenses when you&aposre living in rented housing.

Who Can Claim HRA Exemption?

  • You must be a salaried employee.
  • You must have an HRA component in your salary structure.
  • You must live in a rented accommodation.
  • You must be actually paying rent for the accommodation you occupy.

How is HRA Exemption Calculated?

The amount of HRA that is exempt from tax is the minimum of the following three amounts:

  • The actual HRA received from your employer.
  • The actual rent paid by you for the house, minus 10% of your basic salary (plus Dearness Allowance and any fixed commission).
  • 50% of your basic salary (plus DA and fixed commission) if you live in a metropolitan city (like Delhi, Mumbai, Kolkata, or Chennai), or 40% if you live in a non-metropolitan city.

Our HRA calculator helps you determine this exempt amount effortlessly!

Why Use Our HRA Calculator?

  • Quickly and accurately calculate your HRA tax exemption.
  • Understand the impact of HRA on your taxable income.
  • Plan your finances and taxes more effectively.
  • Make informed decisions regarding your rented accommodation.

Important Considerations:

  • Always maintain rent receipts as proof of payment. Your employer may require these.
  • If your annual rent paid exceeds ₹1,00,000, you must provide your landlord&aposs PAN card details to your employer.
  • You cannot claim HRA if you live in your own house or if you don&apost pay any rent.

Use the calculator above to find out your HRA exemption and taxable HRA instantly!