HRA Calculator

Calculate your House Rent Allowance exemption under Section 10(13A)

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HRA Calculator - Calculate Your House Rent Allowance

Use our HRA Calculator to determine how much House Rent Allowance (HRA) exemption you can claim on your taxable income. This tool helps salaried employees save on taxes by calculating the exempt portion of HRA based on salary, rent paid, and city of residence.

What is HRA (House Rent Allowance)?

House Rent Allowance (HRA) is a component of a salaried individual's income provided by employers to cover rental expenses. It is partially exempt from tax under Section 10(13A) of the Income Tax Act. Employees who live in a rented house and provide valid rent receipts can claim this exemption.

How is HRA Calculated?

The HRA exemption is calculated as the least of the following:

• The actual HRA received from the employer.
• 50% of the basic salary if residing in a metro city (40% for non-metro cities).
• Actual rent paid minus 10% of the basic salary.

The lowest of these three values is considered the exempt amount.

Who is Eligible for HRA?

Employees receiving HRA and living in a rented house can claim the exemption. Self-employed individuals and those not receiving HRA can claim tax benefits under Section 80GG.

Benefits of HRA

• Tax Savings - Reduces taxable income and overall tax liability.
• Flexible Exemption - Can be claimed based on actual rent paid.
• Allows Higher Savings - If properly planned, HRA can provide substantial tax benefits.

Required Documents for HRA Claim

To claim an HRA exemption, you need:

• Rent receipts from the landlord.
• Rental agreement (if required).
• Landlord’s PAN card (if rent exceeds ₹1,00,000 per year).

How to Use the HRA Calculator?

1. Enter your basic salary and dearness allowance (if applicable).
2. Input the actual HRA received from your employer.
3. Provide details of the rent paid and your city (metro/non-metro).
4. Click on "Calculate" to see the HRA exemption amount.

Frequently Asked Questions (FAQs)

1. Can I claim HRA and a home loan tax benefit together?

Yes, if you live in a rented house while repaying a home loan for another property, you can claim both HRA and home loan deductions.

2. Is HRA taxable if I live in my own house?

Yes, if you own the house you live in, HRA received from your employer is fully taxable.

3. Can I pay rent to my parents and claim HRA?

Yes, you can pay rent to your parents and claim HRA, provided they own the property and you maintain valid rent receipts.

4. What if my landlord does not have a PAN card?

If the annual rent is less than ₹1,00,000, the PAN card is not required. However, for amounts exceeding ₹1,00,000, the landlord’s PAN details are mandatory.

5. Can I claim HRA if I am self-employed?

No, self-employed individuals cannot claim HRA under Section 10(13A), but they can claim deductions under Section 80GG.

Start Calculating Your HRA Today!

Use our HRA Calculator now to determine your tax exemption and save more! 🚀