HRA Exemption Calculator

Calculate House Rent Allowance {HRA} Exemption

House Rent Exemption
(Per Month)

House Rent Allowance


What is House Rent Allowance?

House Rent Allowance (HRA) is an allowance given to Salaried individuals for expenses related to rented accommodation. It can be partially or completely exempt from tax.

What if I’m paying rent but I don’t receive any HRA?

Self-employed individuals and salaried employees, who don’t receive any HRA, can claim the benefits of the said component under the section 80GG of Income Tax Act.

How is the tax deduction from HRA calculated?

The least of the following is exempt from tax:

  • 50% of {Basic salary + Dearness Allowance (DA)} where the house is in Mumbai, Calcutta, Delhi or Madras
  • 40% of {Basic salary + DA} where the house is located in any other city
  • Rent paid less 10% of {Basic salary + DA}
  • Actual HRA received

Let’s take the example of Simran:

Simran, who resides in Delhi, gets Rs. 5,50,000 as basic salary and Rs.50,000 as Dearness Allowance (DA). She receives Rs. 1,00,000 as HRA and the rent paid by her is Rs. 1,10,000. Taxable HRA will be computed as follows.

Out of Rs. 1,00,000 received as HRA, the least of the following is exempt from tax:

  • Rs. 3,00,000 being 50% of {Basic salary + DA}
  • Rs. 50,000 being rent paid less 10% of {Basic salary + DA}
  • Rs. 1,00,000 being actual HRA received

In this case, Rs. 50,000 will be exempt from tax.

Why Insta CA?

  • 100% Accurate Calculations
    Accurate Calculation

    Our calculations are 100% accurate so your taxes will be done right, guaranteed.

  • Every Details Reviewed
    Comprehensive Review

    Our expert C.A.s ensure a comprehensive review of your tax return for your peace of mind

  • Secure Payments
    Data Security

    We understand that you care about how safe your information is with us.

    Don't worry, we care about keeping it secure as much as you do.

  • Friendly Customer Service
    Friendly Customer Support

    We believe that there's no such thing as an unnecessary question.

    Do let us know if you have any questions and we'll be happy to help.

Talk to a CA to know more!

How it works

1. Choose a plan

Choose and purchase a plan that suits your requirements

2. Connect with expert

Connect with your dedicated
Insta CA expert who will walk you through our process

3. Upload Documents

Access your personal dashboard to upload documents and download reports

4. Benefit

Grow your business while we take care of your accounting

Any Questions?
Our Support team is happy to help

Email:
Phone:
Url: