HRA Exemption Calculator
Easily calculate your House Rent Allowance (HRA) exemption with our HRA Exemption Calculator. If you're a salaried individual paying rent, find out how much you can save on taxes by claiming HRA benefits. Maximize your tax savings with a quick and accurate HRA calculation.
About HRA Calculator
Find answers to common questions about the House Rent Allowance (HRA) and how our HRA Calculator can help you plan your budget.
House Rent Allowance, or HRA, serves as a salary component provided by employers to cover the housing rental expenses of employees. In the previous income tax regime (Section 10(13A)), a certain amount of HRA could be exempted from tax, but in the new income tax regime, HRA is no longer exempted.
HRStop's House Rent Allowance (HRA) calculator is a cloud-based tool designed to assist in calculating the tax exemption on house rent paid during a financial year.
Employers may allocate the following percentages of the basic pay as HRA:
- 50% for employees in metro cities
- 40% for employees in non-metro cities
The tax exemption is based on the least of the following:
- Total HRA received
- Excess rent paid over 10% of (Basic Pay + Dearness Allowance)
- 50% of Basic Pay + DA (for metro city residents) or 40% of Basic Pay + DA (for non-metro city residents)
Yes, you are eligible to claim HRA for the rent paid on the current rented residence.
No, HRA can only be claimed for the house you currently reside in and pay rent for.
Certainly, tax exemptions can be claimed for both HRA and the interest paid on home loans within a fiscal year under Section 10(13A) and Section 24, respectively.
Yes, tax exemption for rent paid to a family member is permissible, provided there are adequate proofs such as a rental agreement, rent receipts, and financial transactions.