What is HRA Exemption Calculator?
HRA Exemption Calculator enables you to save income tax on House Rent Allowance.
Eligibility criteria for HRA Exemption
How to calculate HRA Exemption?
HRA exemption is calculated as the least of the following :
Proofs to submit to claim HRA Exemption
Now, let’s use the Income Tax Calculator to calculate HRA Exemption.
Step 2: Fill in basic details
![Calculate HRA Exemption Calculate HRA Exemption](https://lenvica.com/wp-content/uploads/2022/01/Basic-details.png)
Step 3: Key in your salary details
![House Rent Allowance House Rent Allowance](https://lenvica.com/wp-content/uploads/2022/01/Earnings-from-payslip.png)
![HRA Exemption_Deduction HRA Exemption Deduction](https://lenvica.com/wp-content/uploads/2022/01/Deduction.png)
Step 4: Declare your rent
![Declare HRA exemption Declare HRA exemption](https://lenvica.com/wp-content/uploads/2021/11/income-tax-HRA.png)
Step 5: Compute Income Tax
![Compute HRA Exemption Compute HRA Exemption](https://lenvica.com/wp-content/uploads/2022/01/Compute-tax.png)
Step 6: Calculation Summary for HRA Exemption
As per your payslip, you are paid HRA of INR 384000.
![HRA Exemption Summary HRA Exemption Summary](https://lenvica.com/wp-content/uploads/2022/01/Calculation-summary.png)
The rent you paid over 10% of Basic Pay + DA + Commission is INR 144000.
![Calculate HRA Exemption Income Tax HRA Exemption](https://lenvica.com/wp-content/uploads/2021/11/Calculate-HRA-Exemption.jpg)
And 40% of Basic Pay + DA + Commission comes to INR 384000.
![HRA Exemption Calculator Income Tax HRA Exemption Calculator](https://lenvica.com/wp-content/uploads/2021/11/HRA-Exemption2.jpg)
The least of the three is calculated as your HRA exemption.
![Income Tax HRA Exemption Income Tax HRA Exemption](https://lenvica.com/wp-content/uploads/2021/11/Income-Tax-HRA-Exemption3.jpg)
So, as per the calculation, HRA exemption is INR 144000.
![HRA Exemption Calculator HRA Exemption](https://lenvica.com/wp-content/uploads/2021/11/Income-Tax-HRA-Exemption4.jpg)
Step 7: What if you move to a more expensive rented house?
Assume you are moving to a new house with rent of INR 30000. Let’s see what change it makes to your HRA exemption. Let’s make that change in the rent declaration.
![HRA Declaration HRA Declaration](https://lenvica.com/wp-content/uploads/2021/11/HRA-Declaration.png)
Now, let’s compute the tax again.
![HRA Exemption Computation HRA Exemption Computation](https://lenvica.com/wp-content/uploads/2022/01/compute-income-tax-again.png)
Your HRA exemption earlier was INR 144000. And now, the HRA exemption with a higher rent is INR 264000.
![HRA exemption calculation HRA exemption calculation](https://lenvica.com/wp-content/uploads/2022/01/Calculate-HRA-Exemption.png)
So, even if you move to a more expensive rented house, you can save up to 30% of increase in rent with HRA exemption.
The HRA Exemption calculator helps you understand the exemption calculation process and also helps you save income tax.
Frequently Asked Questions
Can I claim HRA Exemption if I’m living in my own house?
No, you cannot. You may be receiving House Rent Allowance from your employer, but you don’t have rent receipts to claim HRA Exemption.
Can I claim HRA Exemption if I’m living with my parents?
Yes, you can, if the house property is owned by your parents. You should get rent receipts from your parents.
What if I pay rent but do not receive HRA from my employer?
In this case, you cannot claim HRA exemption. But, you can claim a deduction under Section 80GG.
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