HRA Calculator

HRA or House Rent Allowance, is a part of your salary that's given to you by your employer to cover your rent if you live in rented accommodation. This amount is tax-exempt in most cases, especially if you're living in a metro city like Mumbai, Delhi, etc.

The purpose of this calculator is to help you work out whether the amount of rent you're paying is more than whatever is tax-exempt or not.

Depending on which city you live in, the amount of your HRA that is tax-exempt will vary. To use this calculator, you'll need your latest salary slip, because that's where you'll be able to find the exact details of your basic salary and the HRA component of your salary.

This calculator needs the following information to give you some actionable insight:

1. The basic component of your annual income
2. The HRA that you're getting from your employer
3. Your annual rent minus 10% of your salary's basic component (this is calculated based on your inputs)
4. And whether or not you live in a metro city

The lowest of the above values is what you'll be tax-exempt for. Let's say your monthly basic salary is ₹50,000 and the monthly HRA that your company gives you is ₹21,000. And let's say you live in Bangalore, where you're paying ₹28,000 as monthly rent.

1. This means your basic annual income is - ₹6,00,000
2. The HRA given to you annually is - ₹2,52,000
3. The annual rent you're paying minus 10% of your annual basic would work out to - ₹3,31,000
4. And since you're hypothetically living in Bengaluru, it's 50% of your basic, which is - ₹3,00,000

In this hypothetical scenario, the lowest of these 4 is the second one which is your employer-given HRA. This amount is tax-exempt. The additional ₹84,000 of rent money paid by you is not tax-exempt. This should put things in perspective.