HRA Calculator
Calculate Your House Rent Allowance Exemption Online
Do you live in Delhi, Mumbai, Kolkata or Chennai?
If you don't receive HRA, you can now claim up to ₹60,000 deduction under Section 80GG.
Are you a salary earner and live in a rented house? If yes, you can reduce your taxes by availing the tax exemption of HRA (House Rent Allowance)! This exemption is available in the old tax regime.
HRA is the part of your salary that is received for renting a house, and it can be fully or partially tax-free. In this guide, we will explain in simple language how HRA exemption works, how it is calculated, how our HRA Calculator can help you and also give some practical tips so that you can make maximum tax savings. So let’s understand in a simple and straightforward way without any confusion.
What is HRA and Who Can Claim It?
House Rent Allowance (HRA) is a part of the salary that the employer gives you, so that you can manage your rent expenses. If you live in a rented house and get HRA in your salary, then you can claim tax exemption on it in the old tax regime. But, if you do not live in any rented property and still get HRA, then the entire amount will be taxable.
Some Important Points:
- Benefit will be available only in Old Regime: HRA exemption is available only in the old tax system (old regime). If you have chosen the new tax regime, then you cannot take the tax benefit of HRA.
- Proof of rent is a must: To claim HRA, you need to provide proof of rent payment, such as rent receipts or rental agreement.
- You can also claim rent paid to parents: If you live with your parents and pay rent to them, you can still claim HRA. The condition is that the property should be in their name and they should declare the rent income in their tax return.
How Much of Your HRA is Exempt from Tax?
While calculating HRA exemption, the least of the three amounts is considered:
- HRA received from employer (which you actually receive).
- Actual rent paid minus 10% of basic salary (Basic + DA, if applicable).
- 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, or Chennai), otherwise 40% of basic salary for non-metro cities.
Whatever is not HRA exempt gets added to your taxable income.
Real Example: HRA Exemption Calculation
Scenario:
- Name: Raghu
- Sheher: Mumbai (metro city)
- Basic Salary: ₹50,000/month
- HRA Received: ₹1,00,000/year
- Rent Paid: ₹15,000/month
Now look at the calculations…
- HRA given by employer: ₹1,00,000 (yearly)
- Actual rent – ​​10% of basic salary:
- Yearly rent = ₹15,000 × 12 = ₹1,80,000
- 10% of basic salary = 10% of (₹50,000 × 12) = ₹60,000
- Calculation: ₹1,80,000 – ₹60,000 = ₹1,20,000
- 50% of basic salary (metro city):
- 50% of (₹50,000 × 12) = ₹3,00,000
Out of these three, the least amount is ₹1,00,000 (HRA given by the employer).
- Final Exemption: ₹1,00,000
- Taxable HRA: Zero (because pure HRA is exempted).
If HRA is more, then whatever is saved gets added to the taxable income.
| Criteria | Calculation | Amount (₹) |
|---|---|---|
|
Actual HRA received |
₹1,00,000 |
1,00,000 |
|
Rent paid – 10% of salary |
(₹15,000 × 12) – 10% (₹50,000 × 12) |
1,20,000 |
|
50% of basic salary (metro city) |
50% (₹50,000 × 12) |
3,00,000 |
|
HRA Exemption (Least of the above) |
|
1,00,000 |
User Tips: An easy way to calculate your HRA exemption! Just enter your salary, HRA amount, rent and city type (metro/non-metro) in our HRA calculator and you will easily know how much tax you can save. Don’t worry about manual calculations, you will get absolutely accurate result.
Introducing the HRA Calculator: Simplify Your Tax Savings
Manually calculating HRA exemption can be cumbersome and error-prone. Our HRA Calculator is a handy tool that tells you your taxable and tax-free HRA amounts in seconds. Just enter these details before calculating:
- Basic Salary
- HRA exemption amount
- Your Actual Rent
- City type (metro or non-metro)
This HRA calculator will instantly tell you how much of your HRA is tax-free and how much is taxable. This will help you plan and manage your finances better.
Why use HRA Calculator?
- Saves time: Get results in a jiffy, without complex math.
- Accurate calculations: Avoid manual errors.
- User-friendly: Use easily even if you don’t know tax rules.
- Absolutely free: No hidden charges or subscriptions.
Pro Tip: Make sure to use this HRA calculator before filing your taxes so that you can claim maximum HRA exemption and estimate your tax savings.
Can You Claim HRA in These Scenarios?
1. Paying rent to parents? Take advantage of HRA!
Yes, you can claim HRA, even if you live with your parents! You just have to follow these conditions:
- The house should be in the name of the parents
- Pay them regular rent and keep proof (record of rent receipts or bank transfers)
- Parents have to declare this rental income in their tax return
2. Did not submit rent receipts to the employer? No problem!
If you forgot to submit rent receipts in the office, then do not worry! You can claim HRA even while filing ITR. Just follow these steps:
- Adjust taxable income: by including HRA exemption
- Calculate tax again: tax will also be less on less income
- Claim refund: if more tax has been deducted then
3. Landlord does not give PAN? There can be problem with HRA
If your yearly rent is more than ₹ 1 lakh, then it is compulsory to provide landlord’s PAN. Without PAN, your HRA exemption can be rejected.
4. Home Loan + HRA – will you get tax benefit of both?
Yes absolutely! If your house is on loan and you are living on rent in some other city (for job), then both the benefits can be availed:
- HRA exemption: for rented house
- Home loan deductions: under Section 80C (principal) and Section 24 (interest).
Practical Tips to Maximize Your HRA Exemption
- Optimize rent payments: Structure your rent payments in such a way that the figure left after deducting 10% of your salary from the rent you paid is either equal to or more than HRA. This will maximize your tax exemption.
- Take care of documents: Always save rent receipts, rental agreement, and payment proof (like bank statements). All these will help validate your HRA claim.
- Plan salary structure smartly: Talk to your employer and try to increase the HRA component in your salary, especially if you live in a metro city.
- File ITR correctly: Use HRA calculator to first estimate how much exemption you can get. If you are confused, consult a tax professional so that you do not make any mistake while filing ITR.
- Keep an eye on updates: Tax rules can change, so before filing ITR, definitely check the latest rules for HRA exemption.
Why HRA Matters for Salaried Individuals
HRA (House Rent Allowance) is a part of your salary that can be the easiest way to save tax, especially in expensive cities where rents are high. If you pay rent to your parents, make payments to a landlord, or are repaying a home loan, HRA can help you reduce your taxes smartly.
Using tools like our HRA Calculator can help you save thousands of rupees annually. This is especially beneficial for young professionals and families who live in rented accommodation. A little planning can help you make better use of your salary, be it savings, investments, or other important expenses.
Final Thought
With a little knowledge and tools like our HRA Calculator, you can easily calculate your tax savings and claim them as per tax rules. Whether you are a first-time tax payer or an experienced professional, using HRA correctly can help you reduce your taxable income and keep more money in your pocket.
Go ahead!
- Try our HRA Calculator today and see how much tax you can save.
- Do share this guide with your colleagues and friends so that they too can maximize their tax benefits.
Along with House Rent Allowance calculator, check other AIA Salary Calculator, SIP & Retirement Calculator from here.
If you want to add any other option in this HRA calculator then you can tell us through contact, we will definitely work on it and try to make the House Rent Allowance calculator better for more users.
Frequently Asked Questions
No, HRA exemption is only for those people who live in rented houses. If you live in your own house, then the entire HRA will be taxed.
HRA exemption is available only in the old tax regime. There is no benefit of this in the new tax regime.
Enter your basic salary, HRA received, rent you pay, and city type (metro/non-metro) in the calculator. It will automatically tell how much HRA is tax-free and how much is taxable.
You can claim HRA while filing ITR, but it is necessary to have rent receipts or rental agreement. Claim cannot be made without documents.
You can claim HRA only for the property where you are actually living and paying rent. HRA is not available for two places.
