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
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
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
