An HRA calculator is an online utility tool that helps you compute the amount for your HRA as well as the tax exemption that you could expect from it. Dealing with mathematical terms and equations is not a piece of cake for everyone. Therefore, tools like these online calculators come in handy as they allow you to compute the required figures with a few clicks.

Knowing your allowance amount and tax exemption in advance helps you to make smart and efficient financial decisions.

Pocketful’s online HRA calculator not only helps you to calculate your HRA amount but also the amount for your tax exemption as well.

The HRA calculator works on a standardised formula to calculate the net amount payable for your housing rent allowance.

There are three conditions under which an employee can claim tax exemption on HRA:

• To use the HRA calculator, one should be a salaried employee. HRA calculator is of no use for self-employed people.

• You should be living in a rented house and not in a self-owned one.

• To get the tax exemption relief under HRA, your rent cost should be more than 10% of your monthly basic pay.

Self-employed are not allowed to claim deduction under HRA. However, they can still claim the deduction for rent paid under section 80GG of the Income Tax Act.

The maximum deduction that is allowed under Section 80GG is INR 60,000.