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HRA Calculator

Exempted HRA

100,000

Taxable HRA

0


40% of Basic Salary (or 50% for metro):216,000
HRA received:100,000
Excess of Rent paid over 10% of salary:246,000

The HRA calculator provided on paydoz.com is for informational purposes only. While we strive to ensure accuracy, it is advised to cross-check the results with official sources or consult a tax professional. The calculations are based on general HRA exemption rules and may not account for specific regulations or exceptions. Paydoz.com is not liable for any discrepancies or issues arising from the use of this tool.

How Can an HRA Calculator Help You?

An HRA Calculator helps you determine the exempt and taxable portions of your House Rent Allowance (HRA) as per Indian tax regulations. By inputting details like your basic salary, dearness allowance, HRA received, and rent paid, the calculator provides an estimate of the tax exemption you can claim, helping you manage your finances effectively.

Formula to Calculate HRA Exemption

The exempt portion of HRA can be calculated using the following criteria:

Exempt HRA = Minimum of (HRA received, Rent Paid - 10% of Salary, or 50%/40% of Salary depending on Metro/Non-Metro city)

  • HRA received: The total House Rent Allowance received by the employee.
  • Rent Paid - 10% of Salary: Excess rent paid over 10% of salary (basic + dearness allowance, if applicable).
  • 50%/40% of Salary: 50% of salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% for non-metro cities.

How to Use the HRA Calculator

To use the HRA Calculator:

Advantages of Using an HRA Calculator

  • Helps estimate HRA exemption and taxable HRA.
  • Enables tax planning by showing potential tax savings.
  • Takes into account factors such as salary, rent, and metro city residence.
  • Provides flexibility to adjust inputs and view different exemption scenarios.
  • Assists in making informed decisions about housing and tax declarations.

FAQs

An HRA Calculator is a tool that helps employees determine the exempt and taxable portions of their House Rent Allowance as per the Income Tax Act in India. It calculates potential tax savings based on inputs such as salary, HRA received, and rent paid.
The results from an HRA Calculator are estimates based on the inputs provided. Actual exemptions may vary depending on the specific tax provisions applicable to the taxpayer's case. It’s advisable to consult a tax professional for accurate tax planning.
Yes, the HRA Calculator accommodates both metro and non-metro city residents. For metro cities, it considers 50% of salary as one of the criteria for HRA exemption, while for non-metro cities, it uses 40% of salary.
Key factors include your basic salary, dearness allowance, total HRA received, rent paid, and whether you reside in a metro city. All these elements influence the amount of HRA exemption you can claim.
Your HRA may be fully taxable if the exempt portion, based on the specified rules, is zero. This can happen if your rent paid is low, or if the HRA received doesn’t exceed the calculated exemption limits.