HRA Calculator

HRA Calculator India

The House Rent Allowance (HRA) is decided on various factors like actual salary, the employee’s salary structure, and residing city of the employee. It is one of the vital components of your salary. Your employers provide an HRA as compensation for house rent expenses. Using our HRA calculator, you can calculate your tax liability if you are a salaried employee living in a rented place.

What is an HRA Calculator?

Over the last decade, the cost of living has risen in most Indian cities. This is due to a rise in inflation and an increase in disposable income, along with other factors. Organizations offer a House Rent Allowance or HRA, to those living in a rented house to ensure the welfare of their employees. Our HRA calculator will help you determine the amount you receive as an allowance.

The HRA slabs across India have been changed to a great extent after the recommendation of the 7th Pay Commission. Cities have been classified into three different slabs.

How can an HRA Calculator Help You?

You must meet three conditions to claim an exemption under HRA.

• You must be a salaried individual
• The HRA must be a part of the salary.
• You cannot claim if you are a self-employed individual.
• You must reside in rented premises.
• The HRA has to exceed 10 per cent of your salary.

How to Calculate HRA in India?

To determine the total house rent allowance payable, you can use our BlinkX HRA calculator. Our calculator uses an automated standard formula that gives accurate results every time.

The actual exemption limit will be the lowest of the following three components:

• The total (actual) rent paid minus 10% basic salary for each individual.
• The total (gross) HRA that the employer provides to the employee.
• Depending on how expensive the residential conditions are, 40 to 50% of the basic salary.

For example, Person B, who lives in Mumbai at rented premises, needs to identify the HRA payable. He spends Rs 18,000 monthly on rent.
 

The following is his pay structure breakdown based on our HRA calculator:

Salary Component

Adding the components, Individual B has a monthly salary of Rs 56,000.

Based on the three heads mentioned above, using our HRA allowance calculator, the figures that are calculated are:

• Actual rent paid minus 10% of basic salary = Rs 15,000
• HRA provided by employer = Rs 18,000
• 50% of basic salary (for metro city) = Rs 15,000

Since the least of these three sums is taken for exemption, Individual B will get Rs 15,000 as HRA exemption from taxable income.

How to Use the HRA Calculator?

You can use the HRA calculator using the steps mentioned below: 

• Step 1: Enter your basic salary and HRA
• Step 2: Enter the actual rent paid
• Step 3: Select whether you live in a metro city or not.

Your exempted HRA and taxable HRA will be displayed on the screen.

Benefits of using an HRA calculator

There are several advantages of using an HRA calculator in India, such as:

• BlinkX’s HRA calculator provides you with accurate and error-free results.
• It helps you to claim tax exemptions based on the calculations.
• It includes all the variables that are present as part of the HRA calculation.

Disclaimer: This tool provides information for general guidance only and does not offer any warranties, either express or implied, as to the accuracy, completeness, or reliability of the content. Please read all scheme-related documents carefully before investing.