What is the quantum of HRA exemption he can claim? He receives a HRA of Rs 1 lakh from his employer.įurther, he has taken up an accomodation for which he pays a monthly rent of Rs 15,000. Our calculator can easily help you figure out your HRA exemption.įor example, let's consider the following scenario: The remainder of your HRA is added back to your taxable salary. 40% of basic salary for those living in non-metro cities.50% of basic salary for those living in metro cities.
The least of the following three will be taken to exempt from tax: The entire HRA received is not always fully exempt from tax. If you don't live in a rented accommodation but still get house rent allowance, the allowance will be fully taxable. Our HRA exemption calculator will help you calculate what portion of the HRA you receive from your employer is exempt from tax and how much is taxable. Salaried individuals who live in a rented house can claim this exemption and bring down their taxes.HRA can be fully or partially exempt from tax. If you're a salaried individual, you can claim House Rent Allowance (HRA) to meet your rented accommodation-related expenses.
