🔷 House Rent Allowance (HRA) Exemption Calculator

Overview

House Rent Allowance (HRA) is a component of a salaried individual’s salary that helps them pay rent. Under Section 10(13A) of the Income Tax Act, 1961, HRA is partially or fully exempt from taxable income, depending on specific conditions.

HRA Exemption Formula

The HRA exemption is calculated as the minimum of the following three amounts:

1. Actual HRA received from the employer
2. 50% of salary (if living in a metro city) or 40% of salary (if living in a non-metro city)
3. Actual rent paid minus 10% of salary

Salary for HRA Calculation = Basic Salary + Dearness Allowance (if applicable) + Commission (if applicable)

Example Calculation

📌 Example:

• Basic Salary: ₹50,000 per month
• HRA Received: ₹20,000 per month
• Rent Paid: ₹18,000 per month
• City: Mumbai (Metro City)

💡 Step-by-Step Calculation:

1. Actual HRA received = ₹20,000 × 12 = ₹2,40,000
2. 50% of Salary (Metro City) = 50% of (₹50,000 × 12) = ₹3,00,000
3. Actual Rent Paid – 10% of Salary
   
   • (₹18,000 × 12) – (10% of ₹50,000 × 12)
   • ₹2,16,000 – ₹60,000 = ₹1,56,000

✅ HRA Exempted Amount: Minimum of ₹2,40,000, ₹3,00,000, and ₹1,56,000 = ₹1,56,000
✅ Taxable HRA: ₹2,40,000 – ₹1,56,000 = ₹84,000

Benefits of Using This Calculator

• ✅ Quick & Accurate – Avoid manual tax calculations.
• ✅ Tax Planning – Optimize your salary structure.
• ✅ Metro & Non-Metro Differentiation – Helps in correct tax deductions.
• ✅ Saves Time – Instant exemption computation.

How to Use the HRA Exemption Calculator

1. Enter Basic Salary – Fixed salary excluding allowances.
2. Enter HRA Received – Monthly or yearly HRA component.
3. Enter Rent Paid – Monthly or yearly rent amount.
4. Select City Type – Metro or Non-Metro.
5. Click “Calculate” – Get the exempted amount and taxable HRA instantly.

FAQs

🔹 Q1: Is HRA exemption available if I own a house?
💬 No, you must pay rent and provide valid receipts to claim HRA exemption.

🔹 Q2: Can I claim HRA and home loan benefits together?
💬 Yes, if your own house is in a different city or far from your workplace, you can claim both.

🔹 Q3: What documents are required for HRA exemption?
💬 Rent receipts, rental agreement, and PAN of the landlord (if annual rent exceeds ₹1,00,000).

🔷 Note: For personalized tax planning, contact our experts at CompanyMitra.com.

Would you like an image for this calculator? 🚀