About hra calculator
House Rent Allowance (HRA) is part of salary, and part of it can be exempt from tax if you pay rent. The exemption is the least of three amounts.
The three amounts
- The actual HRA received.
- Rent paid minus 10% of basic salary (plus DA).
- 50% of basic salary for metro cities, or 40% for others.
Conditions
- HRA exemption is available under the old tax regime.
- You need rent receipts, and the landlord's PAN if yearly rent is above a set limit.
- You must actually pay rent.
A worked example
A person in a metro city has a basic salary of ₹30,000 a month, receives ₹15,000 HRA and pays ₹14,000 rent. The exemption is the least of ₹15,000 (HRA received), ₹11,000 (rent minus 10 percent of basic) and ₹15,000 (50 percent of basic). So ₹11,000 a month is exempt.
Paperwork
Keep rent receipts or the rent agreement, and give the landlord's PAN if the yearly rent is above the limit. Your employer asks for these when computing TDS.
