India HRA Calculator 2022
Calculate House Rent Allowance Exemption (FY 2021-22 | AY 2022-23)
Introduction
🎯 What
India HRA Calculator 2022 calculates exempt and taxable House Rent Allowance as per Income Tax Act, 1961 (Section 10(13A) & Rule 2A).
👥 Who
Salaried employees receiving HRA, employees living in rented accommodation, tax planners and individuals.
💡 Why
To correctly calculate HRA exemption and reduce taxable income legally under Income Tax provisions.
🏠 HRA Calculation Details
💵 HRA Summary
Enter details and calculate
HRA Exemption Rules (FY 2021-22)
HRA Exemption is the MINIMUM of:
- Actual HRA received from employer
- Rent paid minus 10% of Basic Salary (Basic + DA)
- 50% of Basic Salary (for Metro cities)
OR 40% of Basic Salary (for Non-Metro cities)
Metro Cities
- • Delhi
- • Mumbai
- • Chennai
- • Kolkata
Exemption: 50% of Basic Salary
Non-Metro Cities
- • All other cities
- • Bangalore, Hyderabad, Pune
- • Ahmedabad, Jaipur, etc.
Exemption: 40% of Basic Salary
Allowances & Deductions
Included in Basic Salary:
- Basic Pay
- Dearness Allowance (DA) - if it forms part of retirement benefits
Excluded from Basic Salary:
- Bonus
- Commission
- Other allowances (transport, medical, etc.)
- Overtime pay
No HRA Exemption if:
- Living in own house (not paying rent)
- No rent paid
- HRA not received from employer
- Living with parents (unless you pay them rent with proof)
Important Requirements:
- Rent receipts mandatory for claiming exemption
- PAN of landlord required if annual rent > ₹1,00,000
- Rent agreement recommended for proof
HRA Calculation Examples
Example 1: Metro City (Mumbai)
Monthly Basic Salary: ₹50,000
Monthly HRA Received: ₹20,000
Monthly Rent Paid: ₹18,000
City Type: Metro
Calculation (Annual):
• Annual Basic = ₹50,000 × 12 = ₹6,00,000
• Annual HRA = ₹20,000 × 12 = ₹2,40,000
• Annual Rent = ₹18,000 × 12 = ₹2,16,000
• A) Actual HRA = ₹2,40,000
• B) Rent - 10% of Basic = ₹2,16,000 - ₹60,000 = ₹1,56,000
• C) 50% of Basic (Metro) = ₹3,00,000
HRA Exempt: MIN(A, B, C) = ₹1,56,000
Taxable HRA: ₹2,40,000 - ₹1,56,000 = ₹84,000
Example 2: Non-Metro City (Pune)
Monthly Basic Salary: ₹40,000
Monthly DA: ₹4,000
Monthly HRA Received: ₹15,000
Monthly Rent Paid: ₹12,000
City Type: Non-Metro
Calculation (Annual):
• Annual Basic + DA = (₹40,000 + ₹4,000) × 12 = ₹5,28,000
• Annual HRA = ₹15,000 × 12 = ₹1,80,000
• Annual Rent = ₹12,000 × 12 = ₹1,44,000
• A) Actual HRA = ₹1,80,000
• B) Rent - 10% of Basic = ₹1,44,000 - ₹52,800 = ₹91,200
• C) 40% of Basic (Non-Metro) = ₹2,11,200
HRA Exempt: MIN(A, B, C) = ₹91,200
Taxable HRA: ₹1,80,000 - ₹91,200 = ₹88,800
Frequently Asked Questions
Q: Is rent receipt mandatory for claiming HRA exemption?
A: Yes, rent receipts are mandatory for claiming HRA exemption during income tax return filing. Without proper documentation, the exemption may be disallowed.
Q: Can I claim HRA exemption without PAN of landlord?
A: If annual rent exceeds ₹1,00,000, providing landlord's PAN is mandatory. Below this threshold, PAN is not required.
Q: Is HRA exemption allowed for self-owned house?
A: No, HRA exemption is not allowed if you live in your own house. You must be paying rent to claim HRA exemption.
Q: Can I claim both HRA exemption and Home Loan deduction?
A: Yes, you can claim both if you own a house in one city and work/live on rent in another city. HRA exemption and home loan interest deduction (Section 24) are separate benefits.
Q: Can I pay rent to parents and claim HRA?
A: Yes, you can pay rent to parents and claim HRA exemption if you have proper rent agreement and payment proof. However, your parents must declare this rental income in their tax returns.
Disclaimer: This India HRA Calculator 2022 is for informational and educational purposes only. Actual HRA exemption may vary based on individual salary structure, employment terms, city classification, and specific Income Tax rules as per Section 10(13A) and Rule 2A. The calculator provides estimates only. Tax laws and exemption rules are subject to change and interpretation. Different employers may have different salary structures affecting the calculation. Always verify calculations with official Income Tax Department guidelines, Form 16, or consult a qualified Chartered Accountant (CA) or tax professional for accurate tax planning and compliance. Etaxing does not provide tax filing services and is not responsible for any tax-related decisions, claims, or legal consequences arising from the use of this calculator.