Dailytrades Financial Tools
Financial calculators by Dailytrades
Plan your financial goals with tools built by Dailytrades - India‘s platform for trading and investment insights.
HRA Calculator
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) and find out how much of your HRA is tax-free vs taxable.
Basic salary (p.a)
₹
Dearness allowance (p.a)
₹
HRA received (p.a)
₹
Total rent paid (p.a)
₹
Exempted HRA₹1,00,000
Taxable HRA₹0
Tax Tip: Claim your full HRA exemption under Section 10(13A) by submitting valid rent receipts and landlord PAN details (if annual rent exceeds ₹1,00,000).
What is House Rent Allowance (HRA)?
House Rent Allowance (HRA) is an allowance provided by employers to employees to help cover house rental expenses. Section 10(13A) of the Indian Income Tax Act offers tax exemption on HRA to salaried individuals living in rented accommodations.
How Does the HRA Calculator Work?
The tax-exempt portion of HRA is calculated as the lowest of the following three criteria:
- Actual HRA received from your employer.
- 50% of (Basic Salary + DA) if residing in a Metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% of (Basic Salary + DA) for Non-Metro cities.
- Actual rent paid minus 10% of (Basic Salary + DA).
Sample Calculation Breakdown
Example (Non-Metro City):
- Basic Salary: ₹5,40,000 p.a.
- HRA Received: ₹1,00,000 p.a.
- Total Rent Paid: ₹3,00,000 p.a.
- 40% of Basic: ₹2,16,000
- Rent Paid - 10% Basic: ₹3,00,000 - ₹54,000 = ₹2,46,000
- Minimum of (1,00,000, 2,16,000, 2,46,000) = ₹1,00,000 (100% Tax Exempt)
Frequently Asked Questions (FAQs)
House Rent Allowance (HRA) is an allowance given by employers to employees for rent expenses paid towards their accommodation. Under Section 10(13A) of the Income Tax Act, employees can claim tax exemption on a portion or all of their HRA.