HRA Calculator

HRA is known as House Rent Allowance. It is generally an amount given in to the employee by employer along with their salary package in order to meet their expense in paying accommodation. The house rent exemption comes under Income Tax Act Section 10 (13a). This calculator is used to find the income tax exemption on your HRA with your rent, salary, allowance, and HRA

House Rent Exemption Calculation

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Metro Non metro
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HRA is known as House Rent Allowance. It is generally an amount given in to the employee by employer along with their salary package in order to meet their expense in paying accommodation. The house rent exemption comes under Income Tax Act Section 10 (13a). This calculator is used to find the income tax exemption on your HRA with your rent, salary, allowance, and HRA

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Formula:

MV = Minimum Value ( ( ( Basic Salary + Dearness Allowance ) * m ) , HRA); HRA Exemption = Minimum Value ( MV , Actual Rent Paid - ( 0.1 * ( Basic Salary + DA ) ) ); Where, m=0.5 when city=metro city m=0.4 when city=non-metro city

Example

If actual rent paid is Rs.20000 and basic salary is Rs.10000 with a Dearness Alowance of Rs.500, what will be the deduction of HRA?
Metro city (0.5)

MV = Minimum Value (((10000 + 500 ) * 0.5), 500)
= Minimum Value ((10500 * 0.5), 500)
= Minimum Value (5250, 500)
= Minimum Value =Rs. 500
House Rent Exemption = Minimum Value (500, 20000 - ( 0.1 * (10000 + 500)))
= Minimum Value (500, 20000 - ( 0.1 * 10500) )
= Minimum Value (500, 18950)
= Rs. 500

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