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

  1. 40% of salary (i.e. Basic + DA) in case of non-metro or 50% of salary (i.e. Basic + DA) in case of metro
  2. Actual HRA received from the employer
  3. 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

  1. Basic Pay
  2. Dearness Allowance
  3. HRA received
  4. 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.

Basic Salary (Rs)
DA (Rs)
HRA (Rs)
Total Rent Paid (Rs)
Do you live in New Delhi, Mumbai, Kolkata or Chennai?
Yes No
 
 
Calculation
50% / 40% of (Basic + DA)
HRA
Excess of Rent paid over 10% of (Basic + DA)
(The least of the above three is exempt from HRA)
 
Result
Amount of Exempted HRA (Rs.)
HRA chargeable to tax (Rs.)

*These calculator are provided as general self-help planning tool. We do not guarantee their accuracy, or applicability to your circumstances.

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