TAXAJ Corporate Services LLP - Financial Doctors

HRA Calculator

Calculate your HRA (House Rent Allowance) returns easily

HRA Calculator




HRA Tax Benefit:

In most Indian cities, the cost of living has risen considerably over the last decade or so. This is partly due to an increase in disposable income besides inflation. To ensure the welfare of its employees, many organizations provide a House Rent Allowance or HRA. This HRA calculator will help you determine the amount you receive as an allowance.

After the recommendation of the 7th Pay Commission, the HRA slabs across India have been changed to a great extent. Cities have now been categorized into 3 distinct slabs. Slab X has the most urbane cities where you clearly need an HRA exemption calculator. Slab Y covers marginally low-cost cities.

How can an HRA calculator help you?

TAXAJ HRA calculator online is of great benefit to those who receive a housing rental allowance.

There are 3 conditions on which you can claim exemption under HRA.

  • You have to be salaried and the HRA must be a part of the salary. You cannot use the house rent calculator if you are a self-employed individual.
  • Second, you must reside in rented premises.
  • Lastly, the HRA has to exceed 10 per cent of your salary.

You can use the house rent exemption calculator that we provide to good use. Here are several advantages.

  • Depending on the city you live in, you can claim HRA based on the calculated amounts. Slab X cities are more expensive to reside in while the costs go down with Slab Y and Z.
  • The house rent allowance exemption calculator will help determine how much tax you need to pay in a financial year.
  •  HRA slabs also vary on the city you stay in. For example, if you stay in Calcutta, Ahmedabad, Mumbai, New Delhi or Chennai, the HRA allowance may go up to 27%. The figure may go down to 18% and 9% for the tier-2 and tier-3 cities.
  • Depending on the quantum of your salary allocated as HRA, you can easily plan for the future using our HRA calculator.

Formula to calculate HRA

TAXAJ uses a standard formula to determine the total House Rent Allowance payable. When it comes to calculating the HRA, salary refers to the basic sum plus the Dearness Allowance, and other variable commissions.

Our product also works as an excellent HRA tax benefit calculator. The actual exemption limit will be the lowest of the 3 main heads below.

  • The total (actual) rent paid minus 10% basic salary for each individual.
  • The total (gross) HRA that the employer provides to the employee.
  • Depending on how expensive the residential conditions are, 40 to 50% of the basic salary.

We can use a fictional example of Person A to identify the HRA payable. If we consider that he lives in Delhi at accommodated premises for which he has to spend Rs 12,000 every month, the following is his pay structure breakdown based on our HRA calculator.

Salary componentTotal amount (each month)
Basic salaryRs 23,000
HRARs 15,000 
Conveyance allowanceRs 3000
Medical allowanceRs 1250
Special allowance under other headsRs 2300

Adding the components, we identify that Individual A has a monthly salary of Rs 44,500.

Based on the three heads mentioned above, using our HRA allowance calculator, the figures that are churned out are:

  • Actual rent paid minus 10% basic or Rs 9700
  • HRA the employer offers is Rs 15000
  • 50% of the basic salary is Rs 11,500

Since the least of these 3 sums is calculated as HRA, Individual A has to pay Rs 9700 as HRA. It will be exempted from his taxable income.

How to use the HRA calculator?

It is easy to use our HRA calculation calculator when you know the steps.

Step 1: Enter your basic salary and HRA you get as per your salary slip

Step 2: Enter the actual rent paid and specify whether you live in a metro city or not from the drop down.

The HRA Tax benefit you can claim will be reflected instantly. 

Benefits of using an HRA calculator

The primary advantages that using a reliable house rent calculator India are –

  • The calculator never makes errors. You can use it as many times as you wish.
  • You can claim tax exemptions based on the calculations.
  • Finally, the calculator takes care of all the variables which are present as part of HRA calculations.

TAXAJ has a wide range of several other calculators you can see below. You are welcome to use them.

  • How much of the HRA I earn is tax exempt?

The following slabs apply in this instance. 

  • 50% of basic salary for big metros.
  • 40% of basic salary for non-metro locales.
  • Ordinarily, the gross HRA the employer pays is non-taxable.
  • Can I claim HRA tax exemption when my landlord is an NRI?

You can but 30% TDS is applicable.

  • Which documents prove I have paid my rent?

Receipts of the rent paid during the last financial year are applicable. If you do not have the receipts, you will have to show financial statements proving you have paid rent.

  • Can HRA and deduction be claimed simultaneously on home loans?

You can. According to the latest amendment to the IT Act, simultaneous applications are now a reality.

  • Is DA taken into account when calculating HRA?

Yes, it is. However, our HRA calculator will do it for you.