How to Calculate HRA Received
HRA, or House Rent Allowance, is a component of your salary that helps cover your rent expenses. Calculating HRA correctly is crucial for financial planning and tax savings. Let’s dive into how to calculate HRA received.
- Enter your basic salary.
- Select your Dearness Allowance (DA) percentage.
- Select your House Rent Allowance (HRA) percentage.
- Click ‘Calculate HRA’.
The HRA calculation formula is:
HRA = (Basic Salary * DA Percentage) * HRA Percentage
| Basic Salary | DA Percentage | HRA Percentage | Calculated HRA |
|---|---|---|---|
| 50000 | 90% | 15% | 6750 |
| DA Percentage | HRA Percentage | Average HRA |
|---|---|---|
| 90% | 15% | 7500 |
- HRA is tax-exempt under Section 10(10AA) of the Income Tax Act.
- You can claim HRA even if you don’t pay rent, but you must submit a no-rent certificate.
What if my DA and HRA percentages are different?
You can still use this calculator. Just select the appropriate percentages from the dropdowns.
Income Tax Department and EPFO are authoritative sources for more information.