How to Calculate HRA Online
House Rent Allowance (HRA) is a significant component of an employee’s salary in India. Calculating HRA accurately is crucial for tax planning and ensuring you receive the correct amount. This calculator simplifies the process.
- Enter your basic salary.
- Enter your dearness allowance percentage.
- Select your city.
- Click ‘Calculate’.
HRA is calculated as 50% of the least of the following:
- Basic salary + Dearness Allowance
- Actual HRA received
- 40% of the city’s average HRA
| City | Average HRA |
|---|---|
| Mumbai | ₹50,000 |
| Delhi | ₹30,000 |
| Chennai | ₹25,000 |
- HRA is taxable if it exceeds 10% of your basic salary + dearness allowance.
- You can claim HRA under Section 10(10AA) of the Income Tax Act.
What if my HRA exceeds the limit?
The excess amount is taxable.
For more information, refer to the Income Tax Department and EPFO websites.