HRA Calculator

Calculate Your HRA Exemption Within Seconds!

HRA Calculator

Basic Salary (p.a)

Dearness Allowance (p.a)

HRA (p.a)

Rent Paid (p.a)

Do you live in Delhi, Mumbai, Kolkata or Chennai?

Yes

Total Taxable HRA

*The least of the below values is exempt from HRA

Actual HRA received ₹0.00

Rent Paid in excess of 10% of salary ₹0.00

50% of Basic Salary ₹0.00

Amount of exempted HRA ₹0.00

HRA chargeable to Tax ₹0.00

Meaning of HRA

What is a HRA Calculator?

Eligibility for HRA

How to Use Keka’s HRA Calculator?

Meaning of HRA

HRA or House Rent Allowance is the part of the salary you receive from your employer for expenses incurred toward rented accommodation.

Anybody living in a rented accommodation can claim HRA; however, variables like your basic salary, rent paid, HRA receivable, and your city of residence decide the HRA calculation. It is exempted under Section 10 (13A) of the Income Tax Act, 1961.

What is a HRA Calculator?

Keka’s HRA Calculator is a free online tool to compute the total HRA exemption you can get during a fiscal year. The HRA exemption calculator performs complex calculations in a few seconds.

Keka’s HRA Calculator is easy to use and you can get the accurate calculation after filling in a couple of variables.

Eligibility for HRA

As per the Section 10 (13A) of the Income Tax Act, salaried employees living in a rented accommodation are eligible to get tax deduction under HRA.

Employees must present rent receipts or other pertinent documentation as proof of their rental expenses in order to be eligible for the HRA tax exemption. It is advisable to keep accurate records to back up the HRA claim when completing an income tax return.

Additionally, the tax regulations governing HRA may change, so it's important to stay updated.

How to Use Keka’s HRA Calculator?

Fill in the following details to calculate HRA using Keka’s HRA Calculator

Step 1: Insert the variables like basic salary, dearness allowance received, HRA received, and total rent paid. You must enter the amount paid per annum.

Step 2: Click on ‘Calculate Now.’

Step 3: You will get the amount of HRA exemption

Meaning of HRA

HRA or House Rent Allowance is the part of the salary you receive from your employer for expenses incurred toward rented accommodation. Anybody living in a rented accommodation can claim HRA; however, variables like your basic salary, rent paid, HRA receivable, and your city of residence decide the HRA calculation. It is exempted under Section 10 (13A) of the Income Tax Act, 1961.

What is a HRA Calculator?

Keka’s HRA Calculator is a free online tool to compute the total HRA exemption you can get during a fiscal year. The HRA exemption calculator performs complex calculations in a few seconds. Keka’s HRA Calculator is easy to use and you can get the accurate calculation after filling in a couple of variables.

Eligibility for HRA

As per the Section 10 (13A) of the Income Tax Act, salaried employees living in a rented accommodation are eligible to get tax deduction under HRA. Employees must present rent receipts or other pertinent documentation as proof of their rental expenses in order to be eligible for the HRA tax exemption. It is advisable to keep accurate records to back up the HRA claim when completing an income tax return. Additionally, the tax regulations governing HRA may change, so it's important to stay updated.

How to Use Keka’s HRA Calculator?

Fill in the following details to calculate HRA using Keka’s HRA Calculator Step 1: Insert the variables like basic salary, dearness allowance received, HRA received, and total rent paid. You must enter the amount paid per annum. Step 2: Click on ‘Calculate Now.’ Step 3: You will get the amount of HRA exemption

Variables for HRA Exemption Calculation

Basic Salary

A fundamental component of an employee’s pay and includes a fixed amount of money. It doesn’t include any bonuses, overtime pay, or additional allowances.

Dearness Allowance

It is another salary component given by an employer to counter the impact of inflation of the cost of living.

City of Residence

Living in metro and non-metro cities also impacts HRA calculation.

HRA Received

It is a salary component where the employer provides allowances to individuals living in a rented space.

Rent Paid

It includes the amount paid by a salaried employee on the rental accommodation

Basic Salary

A fundamental component of an employee’s pay and includes a fixed amount of money. It doesn’t include any bonuses, overtime pay, or additional allowances.

Dearness Allowance

It is another salary component given by an employer to counter the impact of inflation of the cost of living.

City of Residence

Living in metro and non-metro cities also impacts HRA calculation.

HRA Received

It is a salary component where the employer provides allowances to individuals living in a rented space.

Rent Paid

It includes the amount paid by a salaried employee on the rental accommodation

HRA Calculation Formula

The amount to be claimed for HRA exemption needs to be the least of the following:

Actual rent paid minus 10% of the basic salary
Actual HRA offered by the employer
50% of the basic salary+dearness allowance+ other commission for individuals residing in metro cities and 40% of the basic salary+dearness allowance+other commission for salaried employees living in non-metro cities

Benefits of Using Keka’s HRA Calculator

Easy & Effortless

Ensures fairness and consistency in determining the HRA amount and tax implications

Accurate Calculation

Get accurate results in a few clicks with Keka’s HRA exemption calculator

Better Financial Planning

Plan your finances better after knowing the exact HRA amount and its tax implications

Fast Computation

Calculate HRA within 30 seconds with Keka. A hassle-free approach to determine your HRA exemption

Easy & Effortless

Ensures fairness and consistency in determining the HRA amount and tax implications

Accurate Calculation

Get accurate results in a few clicks with Keka’s HRA exemption calculator

Better Financial Planning

Plan your finances better after knowing the exact HRA amount and its tax implications

Fast Computation

Calculate HRA within 30 seconds with Keka. A hassle-free approach to determine your HRA exemption

Why is it Important to Calculate HRA?

Tax Savings

By calculating HRA accurately, you can claim the maximum tax exemption allowed on your rental expenses.

Tax Laws Compliance

Accurate HRA calculations ensure that you and your employer comply with the tax regulations, reducing the risk of penalties or legal issues.

Transparent Salary Structure

Calculating HRA allows you to understand the breakup of your salary and how HRA affects the overall earnings.

Cost Control for Employers

Accurate HRA calculations help employers budget and manage their payroll expenses effectively.

Tax Savings

By calculating HRA accurately, you can claim the maximum tax exemption allowed on your rental expenses.

Tax Laws Compliance

Accurate HRA calculations ensure that you and your employer comply with the tax regulations, reducing the risk of penalties or legal issues.

Transparent Salary Structure

Calculating HRA allows you to understand the breakup of your salary and how HRA affects the overall earnings.

Cost Control for Employers

Accurate HRA calculations help employers budget and manage their payroll expenses effectively.

Frequently Asked Questions on HRA Calculator

When can anyone claim tax exemption on HRA?

One can claim tax exemption on HRA if they are staying in a rental accommodation. HRA exemption helps employees as they can reduce the amount of taxable income. One can also use an HRA calculator online to calculate the exact amount.

What are the proofs to be submitted for HRA?

To claim HRA, individuals need to submit a rental agreement and landlord’s PAN if the annual rental exceeds INR 1 lakh. In addition, they can submit rent receipts to claim HRA.

Who can claim HRA exemptions?

To claim HRA exemptions, an individual needs to fulfill three conditions:

Individuals must be a salaried employee
They must have HRA component in the salary structure
They must live in a rented accommodation

Is rent agreement mandatory for HRA below 1 lakh?

No, the rent agreement is not mandatory to claim HRA exemption. However, you should provide evidence like rent receipts to support your rental expenses.

Can I claim 100% HRA?

You cannot claim more than 50% of your basic salary for HRA exemption if you are living in a rented accommodation in a metro city. For non-metro cities, the maximum claim amount cannot exceed 40% of your basic pay.