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Faster, easier and secure gateway to e-file income tax return

HRA Exemption Calculator

Use our HRA calculator to find out the exemption limit you are eligible for
Calculate You can claim HRA while tax filing even if you have not submitted rent receipts to your HR. All India ITR will help you claim this while E-filing.

HRA chargeable to tax

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HRA receivedRs. {{hracalculator.hraReceived | number }}
Excess of Rent paid over 10% of salaryRs. {{viewStaticData.totalthirdcondition| number }}
The least of the above three is exempt from HRA

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HRA chargeable to taxRs. {{viewStaticData.HRAchargeable | number }}
Calculate Again

Salaried individuals who have rented a house and comply with the rent deduction slab need to have correct HRA calculations to apply for exemptions. For metro city residents, 50% of the basic salary is exempted from tax slabs. For non-metro residents, 40% of the basic salary is exempted from the tax slabs. Also, if you receive HRA from an employer than it is exempt from taxes.

How does an employer decide on how much HRA to pay?

The House Rent Allowance amount which is to be paid to an employee is based on the Basic Salary. Other factors that act as the deciding ingredient for HRA amount is the city where the employee is stationed; in the case, for employees who reside in metro cities, an entitlement of 50% of the Basic Salary is the HRA percentage for other cities the percentage is 40% of Basic Salary.

To calculate the House Rent Allowance amount, components like the sum of Basic Salary, Dearness Allowances and any other commissions play vital roles.

The real HRA given to the employee will be the lowest of the following three allocations:

  • 50% of Basic Salary for employees stationed at metro city and 40% for non-metro city residents.
  • The actual amount received as HRA from the employer.
  • Actual rent paid reduced by 10% of Basic Salary.

Proofs Required for availing HRA Exemption

There will be no documentary proof required if your HRA claim is up to Rupees 3000 per month. If the claim amount exceeds the limit of Rupees 3000 per month then you will be mandated to produce certain documents as proof of accommodation payment.

The Rent Receipts: A fully filled Rent Receipt with the complete details of the residency address, landlord’s name, amount of rent paid, signature of the landlord verifying the payment acceptance etc. along with a 1 Rupee revenue stamp.

Rental agreement in some cases: If the monthly rental amount exceeds Rupees 15000 per month (Rupees 1,80,000 per annum) then PAN Details of the landlord should be produced mandatorily for claiming the HRA exemption.

HRA benefits on Home Loans

If an individual pay for a home loan and he/she avails tax benefits for the loan, the individual can still benefit from the HRA allowance provided by the employer. This is applicable when the employee owns a property but has rented out that accommodation to someone else while he/she themselves occupy a rented accommodation belonging to someone else.

This allows the employee to earn from his own property while benefiting from HRA policy which eventually lessens his/her burden of paying rent for the accommodation he has occupied.

How to use HRA Calculator

To get maximum possible deductions with HRA calculations, use our advanced calculating system. All you need to do is fill in the correct information accordingly in the given field and hit “Calculate” button. It will do all the calculations for you.

  • Go to HRA Calculator Page
  • Enter your Basic Salary
  • Enter the Dearness Allowance Amount
  • Put in the HRA received
  • Enter the total Rent Paid
  • Enter the name of the city you are currently living in
  • Fill your email ID
  • Then click the calculate option