HRA Exemption Calculator
by Zoho PayrollHRA Exemption Calculator
This calculator allows you to know how much of your House Rent Allowance is taxable and how much is exempted from tax.
Here is the tax summary based on your input
Old Tax Regime
New Tax Regime
You will save
0
under the
Summary Breakdown
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| Taxable Income | ||||||||||||||
| Tax on Taxable Income |
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Show BreakUp
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| Less: Rebate Under Section 87A(a) | ||||||||||||||
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| Surcharge | ||||||||||||||
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Health and Education Cess
(4% of Tax on taxable Income + Surcharge)
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| Total Tax to be Paid | ||||||||||||||
Here is the tax summary based on your input
You will save 0 under the
Old Tax Regime
Show Breakup
Summary Breakdown
| Components | Old Tax Regime | ||||
|---|---|---|---|---|---|
| Total Gross Income | |||||
| Total Eligible Deductions | |||||
| Taxable Income | |||||
| Tax on Taxable Income |
Show BreakUp
×
|
||||
| Less: Rebate Under Section 87A(a) | |||||
| Tax on Total Income | |||||
| Surcharge | |||||
| Health and Education Cess (4% of Tax on taxable Income + Surcharge) |
|||||
| Total Tax to be Paid |
New Tax Regime
Show Breakup
Summary Breakdown
| Components | New Tax Regime | ||||
|---|---|---|---|---|---|
| Total Gross Income | |||||
| Total Eligible Deductions | |||||
| Taxable Income | |||||
| Tax on Taxable Income |
Show BreakUp
×
|
||||
| Less: Rebate Under Section 87A(a) | |||||
| Tax on Total Income | |||||
| Surcharge | |||||
| Health and Education Cess (4% of Tax on taxable Income + Surcharge) |
|||||
| Total Tax to be Paid |
Disclaimer: Zoho has taken great care and has made every attempt to ensure that the information obtained from the tool is accurate. However, Zoho is not responsible for any errors or omissions and provides no guarantee or warranty on the correctness of the results obtained from the tool. By using this tool you agree not to hold Zoho liable for any issues that arise from incorrect results obtained.
Frequently Asked Questions
What is HRA?
House Rent Allowance or HRA is a salary component that is given by the employers to the employees to compensate the house rental expenses that employees incur. Under the old income tax regime under Section 10(13A), a certain amount of the HRA can be exempted from tax. In the new income tax regime, HRA is not exempted from tax.
What is the HRA Calculator tool?
The House Rent Allowance (HRA) calculator tool is a free, cloud-based tool developed by Zoho to help you calculate the amount of tax exemption you can avail on the house rent paid during a financial year.
What is the percentage of HRA on basic pay?
The percentage basic pay that employers can give as HRA is as follows:
- 50% for an employee living in a metro city
- 40% for an employee living in a non-metro city
How is the exempted amount of HRA calculated ?
Based on the amount of rent paid, the least of the following will be exempted from tax:
- Total HRA received
- Excess rent paid over 10% of (Basic Pay + Dearness Allowance)
- 50% of Basic Pay + DA (if employee lives in a metro city) or 40% of Basic Pay + DA (if employee lives in a non-metro city)
For example, let us take the case of an employee living in Chennai.
Basic Pay (p.a) - ₹ 9,24,000
HRA given by organisation - ₹ 1,00,000
Paid - ₹ 3,00,000 (₹ 25000/month)
So, according to the tax exemption criteria,
Actual HRA received - ₹ 1,00,000
50% of Basic Pay - ₹ 4,62,000
Excess rent paid over 10% of (Basic Pay + Dearness Allowance) - ₹ 2,07,600
The least of these is the actual HRA received by the employee, ₹1,00,000. This is exempted from tax.
To claim HRA, you must submit sufficient rent receipts at the time of investment proof submission. Also, the PAN of the owner must be furnished if the rent paid in a fiscal year exceeds one lakh rupees.
Can I claim HRA if I live in a rented house but own a house in a different city?
Yes, you can claim HRA for the amount of rent that you pay for the rented house.
Can I claim HRA for more than one house?
No, you can claim HRA for only the house that you are living in and paying rent.
Can I claim both HRA and interest on home loan in a financial year?
Yes, you can claim tax exemptions on both HRA and the interest paid on home loans in a financial year under Section 10(13A) and Section 24, respectively.
Can I get HRA exemption if I pay rent to a family member?
Yes, you can claim tax exemption for rent paid to a family member as long as there are sufficient proofs such as rental agreement, rent receipts, financial transactions, etc.
