Housing Rent Allowance Calculator
Housing Rent Allowance (HRA) is a common component of the salary package provided to employees in India. It is an allowance paid by the employer to the employee to cover their rental expenses for a house or apartment.
Basic salary(p.a)
Dearness Allowance(p.a)
HRA Received(p.a)
Total Rent Paid(p.a)
Are you working in a metro city?
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Calculate
₹ 2,000
Exempted HRA
₹ 8,000
Taxable HRA
How to use this calculator?
Housing Rent Allowance
Housing Rent Allowance (HRA) is a common component of the salary package provided to employees in India.
Find out how much tax I owe based on my HRA
You can use the FundsIndia HRA calculator to calculate the taxable value.
Find out how much I can save with HRA
You can make use of the FundsIndia calculator to find out how much you can save from taxes with this deduction.
How to calculate HRA
The exempt HRA amount is the minimum of the following three:
a. Actual HRA received from the employer.
b. Rent paid minus 10% of the basic salary.
c. 50% of the basic salary if the employee resides in a Tier-1 city, or 40% of the basic salary if the employee resides in a Tier-2/Tier-3 city.
What is HRA?
Housing Rent Allowance (HRA) is a common component of the salary package provided to employees in India. It is an allowance paid by the employer to the employee to cover their rental expenses for a house or apartment.
Why should I calculate my HRA exemption?
By calculating the HRA exemption, you can reduce your taxable income and consequently, the amount of income tax you are required to pay. This can help you save money and manage your finances better.
It's also important to calculate HRA to ensure that you are claiming the correct amount of exemption, and not over or under claiming. Over claiming can result in a penalty and under claiming can lead to unnecessary tax liability.
How does the HRA calculator work?
It uses the following logic
Calculate the exempt HRA amount: The exempt HRA amount is the minimum of the following three:
a. Actual HRA received from the employer
b. Rent paid minus 10% of the basic salary
c. 50% of the basic salary if the employee resides in a Tier-1 city, or 40% of the basic salary if the employee resides in a Tier-2/Tier-3 city.
The remaining amount is taxable: The remaining HRA amount, which is not exempt, is added to the employee’s income and is subject to tax.
How to use HRA calculator?
FundsIndia HRA calculator is an intuitive tool that calculates the HRA easily. Just plug in the basic salary, dearness allowance, HRA received and rent paid. The calculator will give you the exempted amount and taxable amount.
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