India HRA Calculator 2021
Calculate House Rent Allowance Exemption (FY 2020-21)
Introduction
🎯 What
India HRA Calculator 2021 helps salaried employees calculate House Rent Allowance exemption and taxable HRA component.
👥 Who
Salaried Employees, Employers, Tax Consultants, and individuals planning their tax savings.
💡 Why
To accurately compute HRA exemption (Section 10(13A)) and understand taxable salary without manual errors.
📝 Salary Details
Include Dearness Allowance (DA) if it forms part of retirement benefits.
Metro Cities: Delhi, Mumbai, Kolkata, Chennai.
🧾 Calculation Summary
HRA Exemption Rules
The HRA exemption under Section 10(13A) is the minimum of the following three amounts:
- Actual HRA received from employer.
- Actual rent paid minus 10% of basic salary.
- 50% of basic salary for Metro cities (Delhi, Mumbai, Kolkata, Chennai) OR 40% for Non-Metro cities.
Calculation Examples
Example 1: Metro City
Basic Salary: ₹50,000
HRA Received: ₹20,000
Rent Paid: ₹18,000
Limits:
- Actual HRA: ₹20,000
- Rent - 10% Basic: ₹18,000 - ₹5,000 = ₹13,000
- 50% Basic: ₹25,000
Exempt HRA: ₹13,000 (Lowest)
Taxable HRA: ₹7,000
Example 2: Non-Metro City
Basic Salary: ₹60,000
HRA Received: ₹15,000
Rent Paid: ₹12,000
Limits:
- Actual HRA: ₹15,000
- Rent - 10% Basic: ₹12,000 - ₹6,000 = ₹6,000
- 40% Basic: ₹24,000
Exempt HRA: ₹6,000 (Lowest)
Taxable HRA: ₹9,000
Frequently Asked Questions
Q: Can I claim HRA if I live in my own house?
A: No, HRA exemption is only available if you are paying rent for the accommodation you occupy.
Q: Can I pay rent to my parents?
A: Yes, you can claim HRA by paying rent to parents. However, they must include this rent as income in their tax returns. Proof of payment (bank transfers) and a valid rent agreement are recommended.
Q: Can I claim both HRA and Home Loan Interest Deduction?
A: Yes, if you live in a rented house and own a house in a different city (or same city if genuine reasons exist), you can claim both HRA exemption and home loan interest deduction under Section 24(b).
Disclaimer: This India HRA Calculator 2021 is for informational purposes only. Actual tax liability may vary based on individual circumstances and strict interpretation of tax laws. Please verify results with a Chartered Accountant (CA) or tax professional. Etaxing is not responsible for any errors or financial loss arising from the use of this tool.