HRA tax calculator

House Rent Allowance calculator

do you live in Delhi, Mumbai, Chennai, Kolkata ?

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Basic salary (per month)

HRA received (per month)

Rent paid (per month)

Tax free HRA:	0 ₹
Taxable HRA:	0 ₹
Total HRA:	0 ₹

HRA Exemption rules

The exemption on HRA is the minimum of 3:

1. Total HRA received in full year
2. 50% of basic salary if living in metro cities (Delhi, Mumbai, Chennai, Kolkata), 40% for non-metro cities
3. Excess of rent paid annually over 10% of annual basic salary

Now let us understand in details with an example

Basic salary: 50,000 per month

HRA received: 25,000 per month

Rent paid: 20,000 per month

Calculations

1. Annual HRA received: (25,000 x 12) = 3,00,000 ₹
2. 40% of basic salary: [(50,000 x 12) x 40%)] = 2,40,000 ₹
3. Excess of rent paid annually over 10% of annual salary: (20,000 x 12) – 10% of (50,000 x 12) = 1,80,000 ₹

So the minimum of above 3 is : 1,80,000 ₹ which is not taxable

Remaining HRA amout 3,00,000 - 1,80,000 = 1,20,000 ₹ will be taxable

Frequently asked questions FAQ

What is house rent Allowance (HRA) ?

HRA is a component in salary which employees receive from company to pay the rent of their house.

Is HRA given to person who owns a house ?

HRA is one of component of salary can be given to any employee, but if you own a house then you will not get any tax benefit on HRA

What if my employer not paying HRA

You can still get exemption on paid rent in section 80GG

Do I need to submit landlord PAN card ?

If you are paying more than 8333 ₹ in rent per month, then you need to give owner's PAN card