HRA Calculator – Calculate HRA Exemption Online
Free online HRA calculator to calculate House Rent Allowance exemption under Section 10(13A) of Income Tax Act. Plan your tax savings accurately.
About HRA Calculator
Our HRA Calculator is a comprehensive tax planning tool designed to help salaried individuals calculate their House Rent Allowance exemption under Section 10(13A) of the Income Tax Act, 1961.
This advanced calculator provides accurate HRA exemption calculation using the three standard methods prescribed by Indian tax laws. Whether you’re living in a rented accommodation in a metro or non-metro city, this tool helps you maximize your tax savings.
Key Features:
- Accurate HRA exemption calculation using three standard methods
- Metro and non-metro city differentiation
- Detailed calculation breakdown
- Annual tax saving estimation
- Professional reporting for tax filing
Frequently Asked Questions
What is HRA exemption?
HRA exemption is a tax benefit available to salaried individuals living in rented accommodation. It allows you to claim exemption on a portion of your House Rent Allowance from taxable income.
How is HRA exemption calculated?
HRA exemption is calculated as the minimum of three amounts: 1) Actual HRA received, 2) 50% of basic salary for metros (40% for non-metros), 3) Rent paid minus 10% of basic salary.
Which cities are considered metro for HRA?
Currently, Delhi, Mumbai, Chennai, and Kolkata are considered metro cities for HRA calculation purposes. All other cities are classified as non-metro.
Can I claim HRA if I live with my parents?
Yes, you can claim HRA exemption if you pay rent to your parents, provided you have proper rent receipts and the payment is made through banking channels.
What documents are required for HRA claim?
You need rent receipts, rent agreement (if applicable), and proof of rent payment (bank statements/cheques). For annual rent exceeding ₹1 lakh, landlord’s PAN is required.
Can I claim HRA and home loan benefits together?
Yes, you can claim both HRA exemption and home loan interest deduction (Section 24) if you live in a rented house while owning another property.
Is there any limit on HRA exemption?
There’s no fixed upper limit on HRA exemption. It depends on your salary structure, rent paid, and city of residence, calculated as per the three-method rule.
What if my employer doesn’t provide HRA?
If you don’t receive HRA but pay rent, you can still claim deduction under Section 80GG, subject to certain conditions and limits.