HRA Calculator - House Rent Allowance Tax Calculation
Not sure of the total HRA amount to claim as a deduction?
Jupiter's HRA calculator is here to help!
The tool supports reliable and quick calculations and will help you know about the HRA exemptions within seconds.
How to use Jupiter's Free HRA Calculator?
Jupiter's HRA calculator offers effortless and convenient estimations.
To use Jupiter's HRA calculator:
- Enter the required inputs like yearly salary, basic salary with a dearness allowance, and yearly rent.
- The calculator will instantly deliver the expected values.
Read on to learn about HRA and HRA calculator and give a full stop to all the related questions.
What Is HRA?
House Rent Allowance or HRA in salary is an essential component of the salary slip, payable to the employee as the accommodation expense. Its primary objective is to reduce the total taxable income. Both public and private sectors have an HRA section in the salary structure, yet, the allowance varies based on salary and the residential area.
The Income Tax Act of 1961 regulates the HRA provision for self-employed and salaried individuals.
HRA for Salaried Employees-
You can determine the HRA based on your salary. As per the rules laid in the Income Tax Act, the tax-exempt of the HRA is the minimum of -
- 50% of the basic salary of employees residing in metro cities
- 40% of the basic salary of those in non-metro cities
- Actual HRA received
- Actual rent paid minus 10% of the basic salary
HRA for Self-Employed Individuals
Self-Employed individuals, too, can claim the HRA deduction under section 80GG of the Income Tax Act. The section is also for those who are salaried but do not receive an allowance.
- The HRA exemption is only for HUF and individuals under the act.
- The individuals can receive rent deductions only if they do not receive any tax exemption.
- Those willing to receive HRA exemption under section 80 GG should not receive tax benefits related to any other self-occupied property.
However, its calculation is not a layman's task!
So, the HRA calculator is here to simplify these estimations and help you instantly compute an HRA exemption.
What Is HRA calculator?
The HRA calculator is a tool that supports quick and effortless HRA calculations. The results are pretty reliable and help you estimate the HRA exemptions. The House Rent Allowance calculator considers inputs like basic yearly salary, including dearness allowance, yearly HRA, and yearly rent, and calculates the HRA exemption and chargeable HRA. However, special attention is given to the city of residence, i.e., metro or non-metro, before generating the results. The online tool eases the HRA calculation to claim a tax deduction.
Working of HRA Calculator
Let's understand the working of the HRA calculator with the help of an example.
Suppose, A resides in a metro city, and his basic salary with a dearness allowance is Rs 23,80,000. The yearly HRA is Rs 3,80,000, and the yearly rent is Rs 3,20,000. Adding the given inputs in the HRA Calculator will estimate the HRA exemption as Rs 82,000 and Chargeable HRA as Rs 2,98,000. It means that A can claim a tax deduction of Rs 82,000.
How Does Jupiter's HRA calculator help you?
You can save a lot of your time by clicking on the neo bank's HRA Calculator online. The tool produces instant and reliable results that can be used as a reference. You can quickly estimate the deductions and plan your expenses accordingly.
Why Jupiter's HRA calculator?
Have a look at the fantastic features of Jupiter's HRA exemption calculator, and choose Digi bank for all your calculations.
Jupiter's HRA calculator is a free tool, meaning anyone can access the HRA exemption calculator multiple times. There is no limit to the number of times you switch the inputs.
Quick and Effortless
Another feature of Jupiter's HRA calculator is that it is super easy and efficient. You do not require special skills or technical know-how to operate the tool. Just enter the inputs and generate the results.
The results given by the online tool are quite reliable. However, they may vary with any changes in accommodation expenses. Yet, you can use them as a backing to plan your investments.
Better Financial Planning
Jupiter's HRA calculator gives you a glimpse of the total HRA and HRA deductions. The values offered by the tool can be used as a reference to plan your expenses accordingly.
Jupiter's HRA calculator is to assist you in knotty HRA calculations. The estimates seem convenient, yet they aren't a cakewalk for a non-professional. The tool offers instant solutions and is as easy as understanding banking with Jupiter.
So, what's the delay for?
Get a one-stop solution to all your financial needs with the Jupiter mobile app, as finTech doesn't require any different tacts here!
1. What is included in the HRA claim?
The HRA includes only the house or accommodation rent. It does not include other extra charges like electricity or house maintenance charges.
2. Is HRA calculated yearly or monthly?
Organizations in India use different approaches to calculate HRA exemptions. They may either be yearly or monthly. However, Jupiter helps you calculate the yearly HRA from the basic salary and dearness allowance.
3. How can I calculate the total HRA and HRA exemption?
You can use Jupiter's HRA calculator to estimate the total HRA, which includes HRA exemption and HRA chargeable.
4. Can I claim HRA for two houses?
No, you cannot claim HRA for two houses. Suppose you reside in a different city from your parents, but you are paying the rent of both your houses. You can claim an HRA only for your house.
5. How much HRA is allowed?
HRA is 50% of the basic salary + dearness allowance for metro cities and 40% of the basic salary + dearness allowance for non-metro cities.
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