HRA Calculator
Calculate your HRA exemption amount for income tax purposes. The exemption is the minimum of three rules: actual HRA received, 50%/40% of salary, or rent paid minus 10% of salary.
Parameters
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Results Summary
HRA Exemption
$15,000
Taxable HRA
$10,000
HRA Received
$25,000
Mathematical Formula
This calculator determines the results based on the following standard financial formula for HRA Exemption:
HRA Exemption = Min(Actual HRA, 50%/40% of Salary, Rent Paid - 10% of Salary)
Variables Glossary
- HRA Exemption
- Tax-exempt portion of HRA
- Taxable HRA
- Remaining HRA added to taxable income
- Rule 1
- Actual HRA received from employer
- Rule 2
- 50% of salary (metro) or 40% (non-metro)
- Rule 3
- Rent paid minus 10% of salary
The HRA exemption is the least of three amounts. The percentage of salary used depends on whether you live in a metro city (50%) or non-metro city (40%).
Frequently Asked Questions
Can I claim HRA if I live with parents?
Yes, you can claim HRA if you pay rent to your parents. However, the rent should be reasonable and properly documented with a rent agreement and receipts.
What if I don't receive HRA?
If your employer doesn't provide HRA, you may still claim tax deduction under Section 80GG for rent paid, subject to certain conditions.