Are you working in Metro city?
What is HRA?
The house rent allowance (HRA) is an essential part of your compensation. All employers must provide HRA as housing rental expense compensation. However, the most of us are unaware that we can also save tax on it. The HRA amount is determined by factors such as the employee's wage structure, actual salary, and city of residence. Using our HRA calculator, you may determine your tax burden if you are a salaried employee who rents a residence.
What is HRA calculator?
Over the past decade or so, the cost of living has increased significantly in the majority of Indian cities. This is partially the result of a rise in disposable income in addition to inflation. In order to protect the well-being of their employees, many businesses pay a House Rent Allowance or HRA to those who reside in rented housing. This HRA calculator can assist you in determining your allowance amount.
How is HRA calculated?
Your wage mostly determines your HRA. According to income tax regulations, the tax-exempt portion of the HRA (House Rent Allowance) is the lowest sum of the following:
- Actual HRA salary component
- 50 percent of basic income if he resides in Delhi, Chennai, Kolkata, or Mumbai; 40 percent in all other cities.
- Actual rent paid minus 10% of fundamental salary