HRA Calculator
House Rent Allowance (HRA) forms a key part of your salary package. Every employer in India must include HRA to cover your rental expenses. Yet, many salaried individuals miss out on the tax-saving benefits it offers. Your HRA amount depends on your salary structure, basic pay, and the city you live in (metro or non-metro). If you're paying rent, use our HRA calculator to easily figure out your tax exemption and reduce your liability.
What is an HRA Calculator?
An HRA calculator is an online tool that estimates how much of your House Rent Allowance (HRA) can be claimed as tax-exempt (and how much remains taxable) for a financial year in India.
Estimate the eligible HRA exemption you can claim under income-tax rules, which can reduce your taxable salary.
Updated HRA Slabs
Post the 7th Pay Commission recommendations, HRA rates across India now follow three city-based slabs for fairer exemptions.
Slab X (24% of basic salary): Covers 8 major metros like Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune,where high rents demand maximum exemptions.
Slab Y (16% of basic salary): Applies to slightly lower-cost cities like Jaipur, Lucknow, Nagpur.
Slab Z (8% of basic salary): For other Tier-2/3 cities and rural areas.
These slabs ensure tax relief aligns with local rental realities, making HRA a vital salaried perk.
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Stockify's online calculator suite delivers clear advantages for precise investment, savings, or tax strategies. These tools convert intricate financial math into straightforward, practical insights.
Here are the key benefits you gain by using our calculators:
1. Achieve Instant Clarity for Complex Calculations
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How to Calculate HRA in India?
In India, a simple statutory formula under Section 10(13A) is used to calculate HRA. The smallest of these three factors, actual rent paid minus 10% of basic pay (including DA), total HRA received from your company, or 50% of basic salary (metros) / 40% (non-metros),determines the applicable exemption.
In this context, "salary" refers to base pay plus Dearness Allowance; commissions and other allowances are not included. For tenants, this approach guarantees precise tax savings.
We can use an example of Pritam to identify the HRA payable. If we consider that he lives in Mumbai at accommodated premises for which he has to spend Rs 14,000 every month, the following is his pay structure breakdown based on our HRA calculator.
Salary Component | Total Amount |
Basic Salary | Rs.30,000 |
HRA | Rs.15,000 |
Conveyance Allowance | Rs.3,000 |
Medical Allowance | Rs.1,250 |
Special Allowance | Rs.2,300 |
Adding all the components we get the total salary of Pritam is Rs.51,500/-
Using the HRA Calculator, these figures churned out are:
Actual rent paid minus 10% of basic [14000-(10%X30,000)]=Rs.11,000
HRA offered to the employee is Rs.15,000
50% of the basic salary is Rs.15,000
The least of these is Rs.11,000/- hence Pritam has to pay this amount as HRA. It will be exempted from the tax.
How to Use the Stockify HRA Calculator in Simple Steps?
Using our HRA calculator is straightforward and only requires a few details from your salary and rental information.
Step 1: Input your Basic Salary and the HRA amount you receive as shown on your payslip.
Step 2: Provide the Actual Rent you pay monthly and select your city classification (Metro or Non-Metro) from the menu.
With these details, the calculator instantly processes your eligible HRA exemption. This tool simplifies income tax planning by helping you accurately determine your tax-saving potential in just moments.
Key Benefits of Using an HRA Calculator
Ensures Precise, Error-Free Computations
guarantees consistently accurate mathematical findings, removing human calculation errors and supplying trustworthy numbers for your tax return.
Maximises Your Tax Exemption Claims
calculates your precise eligible HRA exemption instantly, assisting you in lowering your taxable income and claiming the full tax advantage to which you are entitled.
Saves a Lot of Time and Makes Planning Easier
simplifies and expedites tax planning by automating complicated computations in a matter of seconds, relieving you of time-consuming formulas.
Allows Unlimited Scenario Testing
Enables you to freely adjust salary, rent, and city details to compare different outcomes and plan optimally, all at no cost.
Clarifies All Applicable Rules & Variables
Automatically factors in key conditions like metro/non-metro city rates and actual rent paid, ensuring you account for all variables in the HRA formula.
FAQ
Out of these three computations, understand the amount exempted is the lowest of a) Actual HRA received, b) Actual rent paid less 10% of your base pay, or c) 50% of salary in metro areas or 40% in non-metropolitan areas. This math is automatically completed by our calculator.
Yes, you can file for a 30% deduction of the rent paid as TDS. Speak to your tax advisor to find out the proper procedures.
Some documents that prove I have paid my rent include rent receipt and rent agreement with your and your landlord's names, address, renting duration, amount, and your landlord's signature or PAN (if annual rent exceeds ₹1 lakh) are examples of valid proof.
Yes, you can apply for both benefits at the same time. You can deduct interest paid on a home loan for a different property you own under Section 24(b) in addition to claiming HRA for the rental property you live in.
Only the Dearness Allowance (DA) that is part of your retirement benefits is considered in the "salary" component for HRA calculation. Other allowances and bonuses are typically not included.
You just need your Basic Salary, monthly HRA received, monthly rent paid, and your city classification (Metro or Non-Metro) to get an instant calculation of your exempt amount.
Absolutely. You can use it as a planning tool by entering projected rent and salary figures.
The calculator provides an accurate estimate based on standard tax rules. While the final exempt amount must be reported as per your Form 16 and ITR guidelines, our tool gives you a reliable figure to plan with.
Yes, our HRA calculator is completely free and unlimited. You can calculate and compare different scenarios as many times as you need for effective tax planning.
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