In most Indian cities, the cost of living has risen considerably over the last decade or so. This is partly due to an increase in disposable income besides inflation. To ensure the welfare of its employees, many organizations provide a House Rent Allowance or HRA. This HRA calculator will help you determine the amount you receive as an allowance.
After the recommendation of the 7th Pay Commission, the HRA slabs across India have been changed to a great extent. Cities have now been categorized into 3 distinct slabs. Slab X has the most urbane cities where you clearly need an HRA exemption calculator. Slab Y covers marginally low-cost cities.
Let's Launch’s HRA calculator online is of great benefit to those who receive a housing rental allowance.
There are 3 conditions on which you can claim exemption under HRA.
Let's Launch uses a standard formula to determine the total House Rent Allowance payable. When it comes to calculating the HRA, salary refers to the basic sum plus the Dearness Allowance, and other variable commissions.
Our product also works as an excellent HRA tax benefit calculator. The actual exemption limit will be the lowest of the 3 main heads below.
We can use a fictional example of Person A to identify the HRA payable. If we consider that he lives in Delhi at accommodated premises for which he has to spend Rs 12,000 every month, the following is his pay structure breakdown based on our HRA calculator.
| Salary component | Total amount (each month) |
| Basic salary | Rs 23,000 |
| HRA | Rs 15,000 |
| Conveyance allowance | Rs 3000 |
| Medical allowance | Rs 1250 |
| Special allowance under other heads | Rs 2300 |
Adding the components, we identify that Individual A has a monthly salary of Rs 44,500.
Based on the three heads mentioned above, using our HRA allowance calculator, the figures that are churned out are:
Since the least of these 3 sums is calculated as HRA, Individual A has to pay Rs 9700 as HRA. It will be exempted from his taxable income.
It is easy to use our HRA calculation calculator when you know the steps.
Step 1: Enter your basic salary and HRA you get as per your salary slip
Step 2: Enter the actual rent paid and specify whether you live in a metro city or not from the drop down.
The HRA Tax benefit you can claim will be reflected instantly.
Benefits of using an HRA calculator
Can I claim HRA tax exemption when my landlord is an NRI?
You can but 30% TDS is applicable.
Which documents prove I have paid my rent?
Receipts of the rent paid during the last financial year are applicable. If you do not have the receipts, you will have to show financial statements proving you have paid rent.
Can HRA and deduction be claimed simultaneously on home loans?
You can. According to the latest amendment to the IT Act, simultaneous applications are now a reality.
Is DA taken into account when calculating HRA?
Yes, it is. However, our HRA calculator will do it for you.