HRA Exemption Calculator is the simplest online tool to find the rent exemption of a salaried assessee. The House Rent Allowance Calculator explanatively shows the many conditions based on which taxable House Rent Allowance is determined. The amount of HRA exempted as per Indian Income Tax Act, 1961 and the amount treated as income is calculated with this HRA income tax calculator Online. Check out the steps to use and working principle of Taxable HRA Calculator in the following sections. Let us found out the Formula for HRA Exemption Calculator here.
|Amount of HRA received|
|Exempted Amount of HRA|
|Taxable Amount of HRA|
|40%(or 50% in case of metropoliton cities)of Basic Salary|
HRA Calculator India
The HRA Calculator is an easy method to calculate HRA amount Online. With this HRA Tax Exemption Calculator, the salaried assessee can Calculate House Rent Allowance exemption Online. Check out HRA Calculation Formula here and download HRA exemption Calculator in Excel for easy calculation of exempt HRA Online out of Total HRA received by the Salaried employee. Calculate Taxable HRA amount as per the provisions of Income Tax Act,1961 in this article. Check out HRA Exemption Calculation Formula to Calculate your HRA exemption Online. You can also get HRA Calculator for easy calculation of exempt HRA Allowance out of Total HRA received by the Salaried Individual. The salaried employee and a Resident of India can check the HRA Calculation and the HRA deduction here which are explained in detail.
How to Calculate HRA Exemption?
The HRA Calculator is made to ease your House Rent Exemption Online. Check out the following steps to get the HRA Calculation online. Here we are providing the complete HRA Calculation for ease of understanding. Let us have a look at How to Calculate HRA Exemption using Online HRA Calculator here. Know about the Salary Calculation in the following section. Check the HRA Exemption calculation in HRA Tax Calculator Online.
- Salary is the combination of Basic pay + Dearness Allowance + Commission based on fixed percentage of turnover).
For example, Mr. Ho Joon Jae has received the following amount during the previous year as salary. And Lives in a Mumbai city.
- Basic Salary – Rs. 75,000/-
- Dearness Allowance (DA): Rs. 15,000/-
- HRA (House Rent Allowance) Received: Rs. 25,000/-
- Actual Rent Paid: Rs. 25,000/-
Calculation of HRA Exemption
Basic+ Dearness Allowance= Rs.75000+ Rs.15,000 = Rs. 90,000/–
The minimum amount shall be exempt has follows
- Actual HRA received Rs. 25000/-
- Rent Paid more than 10% of salary.
==> Rs. 25,000 – 10% of Rs. 90,000
==> Rs. 25,000- Rs. 9000 = Rs. 16,000/-
- 50% of Basic Salary – Rs. 45,000/-
Therefore, Rs. 16,000/- shall be exempt and the balance Rs. 9000 shall be included in gross salary.
If in Case, Mr. Ho Joon Jae lives in other than metro cities then 40% of Salary or HRA exemption which is less will be exempted from Income tax.
Read More: HRA Calculation From Basic Salary
Steps to use HRA Calculator
- Select your Accommodation Location in the respective filed.
- And Enter Basic Salary along with Dearness Allowance in the Basic Pay field.
- Enter House Rent allowance received from the employer in the HRA Received field.
- And also enter Actual Rent Paid of Rent paid filed.
- Click on “Calculate HRA Exemption” button.
Then you will be presented with the Amount of HRA received Exempted Amount of HRA, Taxable Amount of HRA and 40%(or 50% in case of metropolitan cities)of Basic Salary as the output for HRA Exemption Calculator.
HRA Exemption u/s 10(13A)
HRA allowance received is exempt under section 10(13A) as follows.
- Actual HRA received by the employee in respect of the relevant period.
- Extra Rent paid for the house occupied by the salaried employee less 10% of the basic salary for the Relevant Period.
- 50% of basic salary along with DA (Dearness allowance) if assessee lives in a metro or 40% of the basic those living in metro cities for non-metros.
A salaried resident of India can claim HRA exemption u/s 10(13A) of Income Tax Act, 1961 if assessee lives in a rented house. In order to claim the HRA Tax exemption, a salaried individual must actually pay rent for the accommodation which he/she occupies. The rented house premises must not be owned by the salaried assessee. If in case the taxpayer stays in his/her own house, is not eligible to claim any tax deduction, and the entire amount of HRA received is subject to Income tax. As long as the salaried employee does not own the rented house, This minimum of following is allowed as income tax exemption on House Rent Allowance. HRA exemption is one of the tax saving schemes in India.
Read More: Best Tax Saving Schemes
What is HRA?
The salaried assessee who lives in a rented house can claim House Rent Allowance to get tax deduction under section 10(13A). The HRA allowance can be partially or totally exempt from Income taxes. The House Rent Allowance is for expenses related to rented house. If the salaried assessee doesn’t live in rented accommodation, this allowance is fully taxable.
The salaried employee can claim the House Rent Allowance exempt u/s 10(13A) of Income Tax Act, 1961.
What is the Benefit of HRA Exemption?
As House Rent allowance gives tax benefits, HRA offers the reduction in taxable income of the salaried assessee. A salaried employee working in India can take the advantage to get HRA Income Tax exemption. Hence, it clears the working of the Online HRA calculator; you can use House Rent Allowance Calculator to find the HRA tax exemption limit for the Financial Year 2017-2018.
Who gets House Rent Allowance Exemption in India?
- Only salaried assessee gets the benefits of HRA Tax Exemption in India.
- HRA exemption is also available only if the Salaried assessee is living in rented accommodations rather than an own house.
Who can’t get HRA allowance?
- The self-employed assessee is exempt from claiming HRA Exemption in India.
- The Salaried assessees from Private or Government sectors who get accommodation are not any the HRA allowance.
- The salaried employee lives in the own house is also exempted from getting HRA allowance.