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Our House Rent Allowance calculator helps you determine the exact amount of HRA exemption you're eligible for under the Income Tax Act. Use this tool to optimize your tax planning and maximize your savings.
Calculate your House Rent Allowance tax exemption
The House Rent Allowance (HRA) is an important component of your salary structure that provides significant tax benefits. Understanding how HRA exemptions work can help you save thousands in taxes each year.
HRA exemptions can significantly reduce your taxable income. The amount exempt from tax is calculated based on specific rules defined in the Income Tax Act.
Our calculator instantly computes your exact HRA exemption amount based on your basic salary, actual HRA received, and rent paid during the financial year.
Our calculator follows the latest tax rules, including special provisions for metro cities vs. non-metro cities to ensure accurate exemption calculation.
According to the Income Tax Act, HRA exemption is the minimum of the following three amounts:
1
Actual HRA Received
The House Rent Allowance provided by your employer in your salary structure.
2
Rent Paid - 10% of Salary
The actual rent paid minus 10% of your basic salary (including DA and commission, if applicable).
3
50% or 40% of Salary
50% of basic salary if living in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% of basic salary for non-metro cities.
No, HRA exemption is available only if you are living in a rented accommodation and paying rent. If you live in your own house, you cannot claim HRA exemption.
Yes, you can claim HRA if you pay rent to your parents, provided there is a valid rent agreement, rent receipts, and the house is owned by your parents.
If your employer doesn't provide HRA, you can still claim deduction under Section 80GG, subject to certain conditions and limits.
Yes, you should maintain rent receipts or a rental agreement. If the annual rent paid exceeds ₹1 lakh, you need to collect your landlord's PAN details and submit them to your employer.
IT Professional, Bangalore