An HRA (House Rent Allowance) Calculator is an online tool that helps salaried individuals calculate the tax-exempt portion of HRA under Section 10(13A) of the Income Tax Act, 1961.
It considers your basic salary, HRA received, rent paid, and city of residence (metro or non-metro) to provide accurate results instantly.
It simplifies tax planning by calculating your eligible HRA exemption and taxable portion.
The exemption is the lowest of the following:
An HRA Calculator offers a quick, hassle-free way to calculate your HRA exemption. It removes the need to manually apply complex tax rules.
The HRA Calculator determines the tax-free portion of your HRA using this formula:
HRA Exemption = Least of the following:
Breakdown of the Components:
Example:
Step 1:
Step 2: Minimum of ₹20,000, ₹25,000, ₹13,000 = ₹13,000 (exempt)
So, ₹13,000/month is tax-free, and the remaining ₹7,000/month is taxable.
It’s possible but complex. The HRA calculator makes the process easy, fast, and accurate.
You need your basic salary, HRA received, rent paid, and your city type (metro or non-metro).
It helps you identify the maximum tax-free portion of your HRA, lowering your total taxable income.
No, it focuses only on calculating HRA exemption. It doesn’t account for other tax-saving instruments.
You should use the portion of rent you actually pay. Keep rent receipts as proof for tax filing.
Yes, it shows the highest HRA exemption you can legally claim under tax rules, optimizing your deductions.