HRA Calculator – House Rent Allowance & In-Hand Salary Calculator

Use our HRA Calculator to calculate your House Rent Allowance exemption and understand its impact on your in-hand salary after tax. This tool works seamlessly with a salary calculator, CTC to in-hand salary calculator, and take home salary calculator India.

The calculator is useful for salaried employees in private companies, government employees under 7th CPC, and those expecting salary revisions under the 8th Pay Commission.

What is HRA (House Rent Allowance)?

House Rent Allowance (HRA) is a component of salary paid by employers to help employees meet rental accommodation expenses. HRA is partially or fully tax-exempt under Section 10(13A) of the Income Tax Act, subject to conditions.

Correct HRA calculation plays a crucial role in determining your take home salary and final tax liability.

How HRA Exemption is Calculated

The tax-exempt portion of HRA is the minimum of the following three values:

• Actual HRA received from employer
• Actual rent paid minus 10% of basic salary
• 50% of basic salary (metro cities) or 40% of basic salary (non-metro cities)

Any remaining HRA amount becomes taxable and impacts your in-hand salary calculator after tax.

HRA Calculation Formula

HRA Exemption = Minimum of:
1. Actual HRA received
2. Rent paid − 10% of Basic Salary
3. 50% (Metro) or 40% (Non-Metro) of Basic Salary
  

Difference Between CTC, Gross Salary & In-Hand Salary

• CTC: Total cost incurred by employer annually
• Gross Salary: Salary before tax deductions
• In-Hand Salary: Final salary after tax, EPF & professional tax

Using an HRA Calculator along with a CTC to in-hand salary calculator gives a clear picture of monthly earnings.

HRA Impact on Take Home Salary

Proper HRA exemption can significantly reduce taxable income, thereby increasing your monthly take home salary. This is especially beneficial when using the old tax regime.

HRA Calculator for 7th CPC & 8th Pay Commission

Government employees can use this tool as a 7th pay commission salary calculator or 8th pay commission salary calculator to estimate HRA benefits and in-hand salary.

The calculator is equally useful as an 8th pay commission salary calculator in Hindi for users looking to understand salary structure post revision.

Frequently Asked Questions (FAQs)

Is HRA available under the new tax regime?

No, HRA exemption is not available under the new tax regime. It can be claimed only under the old tax regime.

Can I claim HRA if I live with parents?

Yes, you can claim HRA if you pay rent to your parents and they report it as income.

Does HRA affect TDS on salary?

Yes, correct HRA exemption reduces taxable income and lowers TDS on salary.

Why Use Our HRA Calculator?

• Accurate salary calculator logic
• Works with monthly salary calculator
• Supports 7th & 8th pay commission salary calculator
• Easy estimation of in-hand salary after tax

Start using our HRA Calculator India today to maximize tax savings and calculate your exact take home salary.