HRA Calculator
House Rent Allowance (HRA) is an allowance which is given to a salaried person for meeting the expenses related to the rent. Any salaried person living in a rented house can claim House Rent Allowance (HRA) exemption u/s 10(13A) of Income Tax Act from his total income. In this way, he can reduce his income tax liability.
Calculation of HRA Exemption u/s 10(13A) of Income Tax Act
The minimum of the following three amounts is exempted
- 40% of salary (i.e. Basic + DA) in case of non-metro or 50% of salary (i.e. Basic + DA) in case of metro
- Actual HRA received from the employer
- Actual rent paid reduced by 10% of the salary (i.e. Basic + Dearness Allowance (DA))
You can use following HRA Calculator to calculate the amount of HRA Exemption Amount in an easy manner.
Note : The values entered in the calculator should be "Annual"
You need to enter following 4 amounts for this purpose
- Basic Pay
- Dearness Allowance
- HRA received
- Rent Paid
The point to be noted here is that the HRA exemption is allowed to an employee who lives in a rented property, even if he owns a house property in the same city. It is also allowed even if rent is being paid to any family member.
*These calculator are provided as general self-help planning tool. We do not guarantee their accuracy, or applicability to your circumstances.