HRA Calculator to calculate House Rent Allowance Tax in India

HRA Caluclator to Calculate House Rent Allowance Tax exemption limit in India

Answer all of the following questions to find out your tax exemption limit for HRA
How much rent did you pay in the Financial Year
From April to March
Field is required!
What is your Basic Salary?
From April to March
Field is required!
How much HRA did your Employer pay you?
It will be mentioned on your pay slip
Field is required!
How much Dearness Allowance (DA) did you receive in the year?
Only for Government staff getting DA
Field is required!
Are you living in a Metro City?
Chennai, Delhi, Mumbai, Kolkata
Field is required!

HRA tax exemption you can claim is the lowest of the three items below

House Rent Paid
Actual House Rent paid - 10% of Basic Salary
0.00
Field is required!
HRA from Employer
Actual HRA paid to you by the Employer
0.00
Field is required!
% Of Basic
40% of Basic (50% if you live in a Metro city)
0.00
Field is required!

How to calculate my House Rent Allowance (HRA)?

Time needed: 15 minutes.

Here are 4 easy steps to calculate how much Tax exemption you can apply for House Rent in India

  1. Get the HRA component paid by your employer

    Check your salary slip for what is the House Rent Allowance (HRA) they are paying you per year

  2. Calculate the actual rent you pay your landlord

  3. Calculate 40% or 50% of your Basic Salary

    Calculate 40% of your Basic Salary+Dearness Allowance(if you are a Government employee receiving DA). If you are living in a Metro city such as Chennai, Delhi, Mumbai or Kolkota then this will be 50% of your Basic Salary+DA

  4. The lowest amount from the three figures above is your HRA limit

    Now, from the three figures you get from steps 1, 2 and 3, the lowest amount will be your HRA for the Financial Year.

Questions on House Rent Allowance, HRA and Tax on Home Rent

What is House Rent Allowance (HRA)?

House Rent Allowance (HRA) is a benefit provided for people who earn salary to claim a Tax exemption on the rent they pay. Covered under Section 80GG of the Income Tax Act, this outlines the various ways an employee paying rent can claim a tax break on it.

Is House Rent exempted from Income Tax in India?

Yes, House Rent is eligible for tax exemption under Section 80GG of the Indian Income Tax act.

How is HRA calculated?

The lowest amount among the following will be considered as your eligible HRA
1.) HRA given by your Employer
2.) Rent you pay in the financial year – 10% of your Basic salary
3.) 40% of your Basic Salary (Basic Salary + Dearness Allowance if you are getting DA) (Make it 50% if you are living in a Metro city)

How much percent of my basic salary is for HRA?

HRA can be 40% of Basic salary and this is increased to 50% of Basic salary if you are living in a city classified as a Metro (Delhi, Chennai, Kolkata and Mumbai)

For HRA, how many Metro cities are there in India?

India has 4 Metro cities as of now. Delhi, Mumbai, Kolkata and Chennai.

How is HRA calculated for a Government of India employee or Defense staff?

For Government and Defence staff, the Dearness Allowance received will be included with the Basic Salary in calculating the eligible HRA. So for Government of India employees Basic salary + Dearness allowance * 40% (50% if living in a metro) will be an eligible HRA exemption. Between HRA Received, Actual HRA and this, the lowest will become the final House Rent allowance that can be claimed.

If I live in my own house, can I claim HRA?

No, HRA is only for those who are living in a rented house. You can’t claim HRA if you are living in your own house.

If I live in my parent’s house, can I claim HRA? How to claim HRA when living with Parents?

No, HRA is only for those who are living in a rented house. You can’t claim HRA if you are living with your parents in their house. However, you can enter into a legal agreement with your parent’s and start paying them a monthly rent. This can be considered as a valid rent and for your HRA.

If I have a home loan and live in a rented house in different city, can I claim HRA and Loan benefits?

Yes, if your own house under loan is in one city and you are living in another city, you can claim HRA and also Interest on Home Loan

When do I need to give my Landlord’s PAN details when claiming HRA?

The IT department sent out a circular on 10th October 2013 (Circular No. 8/2013), making it mandatory for all who pay over Rs.1,00,000 (1 Lakh) or more per year as rent, to provide the landlord’s PAN number. That is, if you claim more than Rs.8,333 as rent per month, PAN of the landlord is mandatory.

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Abhi
Abhihttps://littlesaves.com
Abhi is a 29 yr old Indian, on FIRE to retire by 40. He has been investing and learning Finance for the past 12 years. After completing Mechanical engineering, he started working in a multi-national Bank and grew to become an AVP. Currently with an IT MNC as a VP. He lives in Bangalore with his wife and their 1 year old daughter. In his free time, Abhi loves to game on the Xbox, watch movies, read and blog.

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