Income Tax Rebate on HRA Calculator
Income tax rebate on HRA (House Rent Allowance) is a crucial aspect of income tax calculation in India. It helps employees save tax by claiming a portion of their rent as an allowance. Understanding how to calculate income tax rebate on HRA is essential for tax planning and maximizing your savings.
- Enter your monthly salary, monthly rent paid, and HRA received.
- Select your city.
- Click ‘Calculate’ to see your income tax rebate on HRA.
The income tax rebate on HRA is calculated as the least of the following:
- Actual HRA received
- 50% of salary (for non-metros) or 40% (for metros) if HRA is not provided
- Actual rent paid minus 10% of salary
| City | HRA Limit |
|---|---|
| Mumbai | Rs. 75,000 |
| Delhi | Rs. 54,000 |
| Chennai | Rs. 36,000 |
| Income Slab | Tax Rate |
|---|---|
| Up to Rs. 2.5 lakh | 0% |
| Rs. 2.5 lakh to Rs. 5 lakh | 5% |
- Keep rent receipts for at least 3 years for audit purposes.
- If your rent is more than 10% of your salary, you can claim the entire rent as HRA.
- If your HRA is more than the actual rent paid, you cannot claim the excess amount.
What if my HRA is more than my rent?
You cannot claim the excess amount.
For more information, refer to the Income Tax Department and CBDT websites.