HRA Calculator
TaxHelpdesk’s HRA Calculator helps in simplifying your tax-planning process by calculating the tax-exempt portion of House Rent Allowance by considering your salary, actual HRA given by employer, and city of your residence.
My Result
Rs. 8,000
Exempt HRA
Rs. 2,000
Taxable HRA
HRA Calculator
Calculate House Rent Allowance Online
HRA Calculator
Who can make use of the HRA Calculator?
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Couples Sharing Rent
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Employee Relocating Work
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Finance Enthusiasts
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HR Professionals
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Salaried Employees
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Professionals
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Self-Employed Persons
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Tax Consultants
House Rent Allowance
Who can claim House Rent Allowance (HRA)?
HRA can be claimed in the following cases:
b. Must reside in rented accommodation : The salaried individual must reside in the rented accommodation to claim HRA. Having said this, if he resides in his own house, then he cannot claim HRA.
c. Payment of rent : There must be payment of the rent to the landlord and the rent receipts must be submitted to the employer to claim HRA.
How much HRA amount is tax-exempt?
• 50% of the basic salary (Metro Cities) / 40% (Non-Metro Cities)
• Rent paid (-) 10% of the basic salary
Illustration:
| Name | Ram | Shyam |
|---|---|---|
| Basic Salary | ₹6,00,000 | ₹7,20,000 |
| Actual HRA Received | ₹1,20,000 | ₹2,40,000 |
| Rent Paid | ₹2,40,000 | ₹3,60,000 |
| Resides in | Non-Metro City | City |
| 40% of Basic Salary | ₹2,40,000 | - |
| 50% of Basic Salary | - | ₹3,60,000 |
| Rent paid (-) 10% of Basic Salary | ₹1,80,000 | ₹2,88,000 |
| Least of the above = HRA Tax Exempt Amount | ₹1,20,000 | ₹2,40,000 |
Conditions for claiming HRA
• Rent Receipts: For claiming HRA, the employee must submit the rent receipts or rent agreement as a proof to the employer.
• Landlord’s PAN: If the annual rent exceeds ₹100000 or ₹8333 monthly, then the employee must provide the PAN of the landlord.
• No HRA exemption in case of payment of rent to family: If an employee is paying rent to the spouse, then as per Income Tax laws, there can be no claiming of HRA. However, if the employee is paying rent to their parents, then there can be chances for HRA exemption.
How TaxHelpdesk can help you in calculating HRA?
• Select the period and enter the relevant details: Select the relevant period like monthly or annually, type of city and enter the relevant details like rent paid, salary, dearness allowance, email ID and phone number
• Click on Calculate: Click on Calculate and the HRA tax-exempt amount will reflect on your screen. You can get it for free on your email or WhatsApp.
Documents required for claiming HRA
• Rent Agreement
• Landlord’s PAN
• Rent payment proofs
Absolutely not! All the calculators powered by TaxHelpdesk are absolutely free for its users.
Oh no! You cannot claim HRA if your salary does not include HRA component. However, you claim deductions on rent paid under Section 80GG of the Income Tax Act.
No, documents are not required to be submitted at the time of filing the Income Tax Return. But they must be submitted to the employer as proof for claiming HRA.
Of course! You can claim HRA if you stay in a rented house and the house owned by you is in a different city.
The mode of payment of rent for claiming HRA is irrelevant. However, you need to have rent receipts as proof for future reference.
If you have a valid rent agreement for staying at your relatives' place or parents’ place, you can very much claim HRA.
If the annual rent does not exceed ₹100000 annually or ₹8333 monthly, then you do not need the PAN of your landlord. However, if the rent exceeds these limits, then you need to get a declaration from the landlord.
If you don’t submit receipts, HRA will be added to your taxable salary. However, you can claim it later while filing ITR.
You can claim HRA only for those 6 months in which you stayed on rent. For the remaining 6 months, you cannot.
No, only salaried individuals having HRA in their salary component can claim it. However, the freelancer or self-employed individuals can claim deduction on rent paid under Section 80GG.
