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HRA Calculator

Salary (Basic p.a)

Dearness allowance(p.a)

HRA received(p.a)

Total rent paid(p.a)

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Exempted HRA

0

Taxable HRA

0

What is an HRA Calculator?

An HRA (House Rent Allowance) calculator is a quick and useful tool for calculating tax exemptions under Section 10(13A). To use HRA calculators online all you have to do is enter your salary information and the calculator will provide you with the result instantly.

Navi’s HRA calculator is an accurate and user-friendly tool for calculating your HRA exemption and helps avoid errors while calculating HRA. Just enter your basic salary, rent paid, HRA received and dearness allowance received. The online calculator will display the HRA exemption in just a few seconds.

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How to Calculate HRA?

The HRA component of your salary is exempt from taxes. It is the minimum of the actual component of the salary, 50% of the basic salary if you reside in Delhi, Mumbai, Chennai, or Kolkata; 40% in other cities and the actual rent paid is 10% of the basic salary. Navi HRA Calculator helps you calculate HRA in seconds. The online calculator is extremely simple and easy to use. Here’s how you can calculate the HRA:

Select the basic salary

Enter the yearly basic salary amount

Select HRA and Dearness Allowance

Enter the HRA and dearness allowance received

Select total rent paid

Enter the total rent you have paid in a year

You will be able to view your HRA amount

What is the Formula to Calculate HRA?

Assume that you live in Mumbai and pay ₹25,000 per month as rent. Your HRA is ₹15,000 per month, while the basic pay component of your salary is ₹40,000 per month.

Therefore:
Total HRA received= ₹(15,000 x 12) = ₹1,80,000
Actual applicable rent – 10% of salary = ₹(21000 x 12) = ₹252,000
50% of basic salary = ₹(20,000 x 12) = ₹240,000

As the least of these sums is exempted from HRA, a sum of ₹15,000 will be exempted each month from taxable income.

Advantages of Using Navi’s HRA Calculator

Here are some of the benefits of using Navi’s online HRA calculator:

User-friendly design

Navi’s HRA calculator is easy to use and has a clean interface

Saves time

Calculate the exempted HRA within seconds

Helps you plan better

Navi’s HRA calculator helps you plan your finances better to reduce your taxable income

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Frequently asked questions

In this case, you can claim the HRA tax benefit when filing your income tax returns. You should keep proof of rent payments on hand because you may be required to submit these documents to the Income Tax department to validate your claim.
If a person pays rent for an unfurnished or furnished house, they can claim a tax deduction on the rent paid (under Section 80 (GG) of the Income Tax Act), as long as HRA is not part of his or her salary. Form 10B should be submitted for this purpose.
Rent receipts and rental agreements must be submitted to the employer in order to claim the deduction for the house rent allowance. If the rent is more than ₹1 lakh per annum, the house owner’s PAN must be submitted.
You cannot claim an HRA tax exemption if you pay rent to your spouse.
If you fail to submit the HRA documents to your employer, the HRA section of your Form 16 will be taxable. If you do not have your rent documents, you can still claim HRA benefits by manually submitting the eligible HRA amount, which is tax-exempt.
You must have a valid lease agreement. The rent agreement must include all relevant information, such as the amount of monthly rent, the length of the lease, any utility bills you must pay and so on.
If you pay rent to your parents, your HRA may be tax-free. If the parent owns the property, a person living in her parents’ home can pay them to rent and claim an HRA exemption.
The amount of HRA you can claim is determined by your salary, HRA received, annual rent paid, and location. For salaried workers, it is usually the lower HRA paid by an employer, actual rent paid for housing minus 10% of basic pay, or 40%/50% of basic pay for those living in non-metro/metro cities.
HRA deductions can be claimed under Section 10(13A) for salaried individuals and Section 80GG for self-employed or salaried individuals who do not receive HRA.
Disclaimer : Navi does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness/accuracy. The use of any information set out is entirely at the User’s own risk.

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