HRA Calculator Online

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HRA Calculator is an online tool to help individuals calculate their House Rent Allowance (HRA). HRA is the total amount their employers allot towards their respective house rents.

House Rent Allowance (HRA) is the allowance an employer provides to their employee as compensation for house rental expenses paid by the employee. It forms part of the salary paid by the employer to their employee.

What is HRA?

HRA complete form is House Rent Allowance. It is a part of your salary provided by the employer for the expenses incurred towards rented accommodation. You can claim HRA exemption only if you reside in a rented house. HRA exemption has covered under Section 10(13A) and rules 2A of the Income Tax Act, 1961.

How is Exemption on HRA calculated?

The HRA exemption calculates per 2A of the Income Tax Rules. As per Rule 2A, the least of the following is exempted from salary under Section 10(13A) and does not form part of the taxable income

  • Actual HRA received from the employer
  • For those living in metro cities: 50% of (Basic salary + Dearness allowance)
  • For those living in non-metro cities: 40% of (Basic salary + Dearness allowance)
  • Actual rent paid minus 10% of (Basic salary + Dearness allowance)

How to Use the HRA Calculator?

It is easy to use the HRA calculator when you know the below steps.

  • It is easy to use the HRA calculator when you know the below steps.
  • Enter the rent paid and specify whether you live in a metro city.

The HRA (House Rent Allowance) calculation for income tax makes it easy for employees to save taxes.

How can an HRA Calculator Help You?

  • You can claim HRA based on the calculated amounts depending on your city. Slab X cities are expensive, while the costs decrease with Slab Y and Z.
  • The house rent allowance (HRA) exemption calculator will help determine how much tax you must pay in a financial year.
  • HRA slabs also depend on the city where you stay. For example: if you remain in Ahmedabad, Mumbai, Calcutta, New Delhi or Chennai, the HRA allowance may increase to 27%. The figure may go down to 18% & 9% for tier-2, three cities.
  • Depending on how much of your salary designate as HRA.

How to Calculate HRA?

Regarding HRA calculation, salary refers to the basic sum plus the Dearness Allowance and other commissions. The exemption limit will be the lowest of the three principal heads below.

  • The total rent paid minus 10% basic salary for each Person.
  • The whole (gross) HRA that the employer gives to the employee.
  • Depending on the residential conditions' cost, 40 to 50% of the basic salary.

Example:

Consider that Person A stays in Delhi at accommodated, for which he has to spend Rs 12,000 per month, and his pay structure breakdown has based on our HRA calculator.

Salary component Total amount (each month)

Basic salary Rs 23,000

HRA Rs 15,000

Conveyance allowance Rs 3000

Medical allowance Rs 1250

Special allowance under other heads Rs 2300

Add the components that person A has a salary of Rs 44,500 per month.

Based on the three parameters mentioned above, using the HRA calculator, the figures are:

  • 50% of the basic salary is Rs 11,500
  • Actual rent paid minus 10% basic or Rs 9700
  • HRA, the employer offer is Rs 15000

Since the least of these three sums calculate as HRA, Person A has to pay Rs 9700 as HRA. It will be exempt from his taxable income.

Benefits of Using an HRA Calculator

When you use an HRA calculator, you benefit from the following:

  • Accurate calculations
  • Accessible tax exemptions based on the calculations
  • HRA slabs also depend on the city where you stay. For example: if you remain in Ahmedabad, Mumbai, Calcutta, New Delhi or Chennai, the HRA allowance may increase to 27%. The figure may go down to 18% & 9% for tier-2, three cities.
  • Quick calculations considering all the variables

FAQ'S


Is the HRA calculator free to use?

Yes

How is House Rent Allowance Determined?

Your HRA is equivalent to 50% of your basic salary if you live in a metropolitan city. Your HRA should equal 40% of your basic salary in any other city. If you do not pay any dearness allowance or commissions, the HRA you should get is 40% to 50%.p>

How much is HRA based on salary?

50% of your salary is eligible for the HRA exemption if you live in a Metro city in India. 40% of your salary is HRA exempted if you live in a non-metro city. Actual rent is paid each month, minus 10 % of your salary (salary here is the basic salary, including the commissions and dearness allowance).

Can I get a tax rebate if I stay in my own house?

You can only get a tax rebate on HRA if you reside in rented accommodation.