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HRA Calculator

Calculate Your HRA Exemption Within Seconds!

HRA Calculator

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

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

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.

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

Other Calculators

HRA Calculation Formula

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

HRA Exemption Calculation for Employees in Metro Cities

Example:

Mr. A, a salaried employee, lives in a rented flat in Kolkata and pays a monthly rent of INR 15,000. He receives a monthly HRA of INR 9,167. Let us see the HRA calculation for Mr. A.

Basic Salary 21,927
HRA 9,167
Conveyance 2,917
Medical Allowance 1,250
Special Allowance 7,725
Total INR 42,986

HRA Calculation Formula:

  • Actual rent paid minus 10% of the basic salary = 15,000 − (10% of 21,927)
  • Actual HRA offered by the employer = 9,167
  • 50% of the basic salary = 50% of 21,927
Amount of Tax Deduction = ₹9,167

HRA Exemption Calculation for Employees in Non-Metro Cities

Example:

Mr. X, a salaried employee, lives in Nagpur in a rented accommodation. He pays a monthly rent of INR 10,000 and receives a monthly HRA of 8,457. Let us see the HRA calculation for Mr. X.

Basic Salary 21,927
HRA 8,457
Conveyance 2,917
Medical Allowance 1,250
Special Allowance 7,725
Total INR 42,986

HRA Calculation Formula:

  • Actual rent paid minus 10% of the basic salary = 10,000 − (10% of 21,927)
  • Actual HRA offered by the employer = 8,457
  • 40% of the basic salary = 40% of 21,927
Amount of Tax Deduction = ₹7,807.3

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

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.