If you are a salaried employee living in rented accommodation, you may be eligible to claim House Rent Allowance (HRA) to reduce your taxable income. HRA is a salary component that can be partially or fully exempt from tax, depending on your salary structure, rent paid, and city of residence. By claiming this exemption, you can significantly lower your overall tax liability.
This HRA Exemption Calculator helps you determine exactly how much of the HRA received from your employer is tax-exempt and how much remains taxable.
However, if you receive HRA but do not live in a rented house, the entire allowance becomes fully taxable. Please note that HRA exemption is available only under the old tax regime, and cannot be claimed under the new tax regime.
HRA Exemption Calculator
House Rent Allowance (HRA) is a component of your salary that allows salaried individuals to claim tax exemption on the rent paid for accommodation. The exemption is calculated using specific rules defined under Section 10(13A) of the Income Tax Act.
This calculator helps you instantly compute your HRA exemption and taxable HRA based on salary, rent paid, and city of residence.