HRA Exemption Calculator

House Rent Allowance Exemption Calculator for Tax Saving for the year 2017-18.

* Basic Salary

Dearness Allowance (DA)

* HRA Received

House Rent Paid

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HRA Exemption Calculations

HRA exempt from tax calculation detail:

If you are salaried person then you can claim House Rent Allowance (HRA) to meet your rented accommodation-related expenses. Salaried individuals who live in a rented house can claim this exemption and bring down their taxes. HRA can be fully or partially exempt from tax. HRA exemption calculator will help you calculate what portion of the HRA you receive from your employer is exempt from tax and how much is taxable.

If you are not living in a rented accommodation but still get house rent allowance, the allowance will be fully taxable.

How much of my HRA is exempt from tax?

The entire HRA received is not always fully exempt from tax. The least of the following three will be taken to exempt from tax:
HRA received from your employer

Actual rent paid minus 10% of salary
50% of basic salary for those living in metro cities
40% of basic salary for those living in non-metro cities

Consider following example to understand the HRA exemption calculations:

Sonu lives in Ahmedabad.
His basic salary: Rs 30,000 per month
Rent he pays: Rs 16,000 a month
And HRA Received: Rs 13,000
The HRA exemption he would get would be the least of the following:

Description	Amount
40% of basic salary	Rs 12,000
HRA received	Rs 13,000
Excess of rent paid over 10% of salary	Rs 13,000
The least of the above three is exempt Hence, exemption would be.	Rs 12,000
HRA chargeable to Tax	Rs 1,000

And, HRA Chargeable tax will be calculated as:
HRA Chargeable tax = Least of above three - HRA amount
In our example HRA amount is Rs 13,000 and least of all three amount is Rs 12,000 then HRA chargeable tax is Rs 1,000.

Home Rent Allowance - Frequently Asked Questions

1. What is HRA ?

HRA or House Rent Allowance is a component of salary provided by employer to his employee. If you receive HRA as part of your salary and you live in a rented accommodation, then you can claim full or partial HRA exemption under section 10. However, HRA is fully taxable if you don’t live in a rented accommodation.

2. How to Calculate HRA ?

Your HRA calculation depends on four factors. These factors are as follows:

Salary
HRA component of salary
Rent paid
Location of your rented residence (Metro or Non Metro city)

3. Can I get tax benefits on HRA along with tax benefits on home loan ?

Yes you can claim both tax exemptions together. If you are a home owner paying back home loan but living in a rented accommodation then you can get tax benefits for both cases.

4. To claim HRA, whom do I pay rent to ?

HRA benefits can be claimed if you pay rent to your landlord, i.e. owner of the property in which you live. However, the owner can be anyone including your parents. But remember that the at least 70% of the rent you pay to your parents get added to their taxable income also.

5. Is my landlord’s PAN mandatory to claim HRA ?

If you pay rent in excess of Rs. 1 lakh p.a. then it is necessary to mention PAN details of your landlord in your tax return to claim tax exemption on HRA.

6. My employer does not give me HRA. Can I still claim relevant tax deduction ?

Section 80GG of Income Tax Act allows tax deduction to the individual even if he does not get HRA from his employer.

7. My landlord does not have PAN. How do I claim tax deduction on HRA ?

It is necessary to get PAN details of your employer to claim tax benefits on HRA. However, if your landlord does not have a PAN then you must get a declaration from him regarding the same. It is better that you get these details (PAN or declaration) before you take place on rent in order to avoid hassles at the time of filing return.

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