House Rent Allowance Calculator

Please fill below details to calculate HRA Exemption/Tax benefit for House Rent paid

Frequently asked Questions.

The House Rent Allowance is an amount paid by employers to employees as a part of their salaries.It provides employees with tax benefits for what they pay towards accommodations every year.
Please follow the given below steps to calculate your HRA through myITreturn portal:
  1. Please visit HRA Calculator Page and login/signup or If you are already logged in, from the home page, select the 'HRA Calculator' service.
  2. Fill all the details as required for HRA calculation.
  3. Click on "Calculate".
Here you can see the details of your HRA Calculation.
Case 1 - There are chances that House Rent Allowance(HRA) is paid by your Employer, but exemption is not provided by him due to non production of Rent Receipts.
In such case, he can claim HRA exemption benefit while filing Income Tax return by computing the exemption amount as follows :-
As per the Indian Income Tax Act, the HRA exemption should be calculated as the least of the following.
  1. Rent paid in excess of 10% of Salary.
  2. Actual HRA received by the employee.
  3. 50% of Salary, if the Employment is in Mumbai, Delhi, Kolkata or Chennai. If Location is other than Mumbai, Delhi, Kolkata or Chennai, then 40% of Salary.
Note : Salary for computing HRA means Basic Salary + Dearness Allowances + Percentage base commission, if any.

Case 2 - Employer has not paid House Rent Allowance(HRA) as part of Salary and Taxpayer himself is staying in Rented house.
In such case, Taxpayer can claim deduction for amount of Rent paid for his accommodation U/s 80GG, if following conditions are fulfilled.
  1. Taxpayer is self employed person or he/she is salaried person but does not receive House Rent Allowance from the employer at any time during the year.
  2. Taxpayer or his/her spouse or minor child should not own any residential house at the place where he resides, performs the duties of his office, or employment or carries on his business or profession.
  3. In case Taxpayer owns residential accommodation at a place other than the place in Pt.2 above, then he/she should not declare such House Property as self occupied. It should be declared as Deemed Rent House Property (Declaring Fair Market Rent as Rental Income).
    As per Income Tax Act, Maximum Deduction under section 80GG is least of:
    1. Rs 5000 per Month,
    2. 25% of Total Income,
    3. The Excess of actual rent paid over 10% of Total Income.
Note : Total Income for this purpose means total Income minus Income from Capital Gains minus Tax Saving and other deductions.
If you are living with your friends, colleagues or others in a shared flat, you can avail HRA benefit in proportion of rent that you are paying. HRA could be claimed in your Income-tax return only if you have submitted rent receipts to your employer. Hence you need to make sure that you are issued a separate rent receipt by your landlord for amount paid by you.
So, HRA for shared flat is calculated in the same way as normal HRA the only difference is , here you claim HRA on your share of rent paid.
If both the working spouses are paying rent to the landlord and are furnishing separate receipts, then husband and wife both can claim HRA exemption separately. However, you need to be careful that there is no duplication and Income-tax department has not deducted tax twice from your landlord's income.
Yes, you need to enter the PAN of your landlord if the annual rent paid by you exceeds Rs.1 lac. In case the landlord does not have a PAN, you can accordingly ask for a declaration (affidavit) from the landlord with his name and address on it.
Yes, you can claim both the exemptions provided you are able to produce original and sufficient proofs for both.You will be entitled to claim tax benefit on:
Principal repayment under Section 80C , interest payment under Section 24 and HRA benefit as well.