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.
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Rs. 8,000
Exempt HRA
Rs. 2,000
Taxable HRA
HRA Calculator
Calculate House Rent Allowance Online
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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
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
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
House Rent Allowance commonly known as HRA is a part of the salary of the salaried individuals. This allowance is provided to salaried individuals to meet their rental expenses. Further, this allowance is partially or fully tax-exempt under Section 10(13A) of the Income Tax Act.
Who can claim House Rent Allowance (HRA)?
HRA can be claimed in the following cases:
a. Salaried Individuals : Only salaried individuals that receive HRA as a part of their salary package can claim this allowance. Therefore, to claim HRA, it must specifically be a part of the salary structure of the individuals.
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.
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?
• Actual HRA received as a part of the salary
• 50% of the basic salary (Metro Cities) / 40% (Non-Metro Cities)
• Rent paid (-) 10% of the basic salary
• 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
• Rented Accommodation: The taxpayer must reside in rented residential accommodation. If he is residing in his own house, then there can be no claiming of 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.
• 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?
• Calculator: Go to www.taxhelpdesk.in and click on Calculators > House Rent Allowance
• 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.
• 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 Receipts
• Rent Agreement
• Landlord’s PAN
• Rent payment proofs
• Rent Agreement
• Landlord’s PAN
• Rent payment proofs