What is an HRA Calculator?
If you live in a rented house and receive House Rent Allowance (HRA) as part of your salary, you can claim a massive tax exemption under Section 10(13A) of the Income Tax Act. However, calculating the exact exempt amount involves a complex 3-step mathematical rule. This is where an HRA Calculator becomes essential.
How is HRA Exemption Calculated?
The tax-exempt HRA is the lowest of the following three amounts:
- Actual HRA received from your employer.
- Actual rent paid minus 10% of your Basic Salary + DA.
- 50% of Basic Salary + DA (for metro cities) or 40% (for non-metros).
Our HRA exemption calculator automates this entire calculation. Just enter your basic salary, HRA received, and actual rent paid, and it will instantly give you the exact exempt and taxable HRA components for your ITR filing.