The tax-exempt component of the HRA must be at least one of the following amounts in accordance with income tax regulations: actual pay amount for HRA. 40% of base pay if he lives in any other city; 50% of base pay if he lives in Delhi, Chennai, Kolkata, or Mumbai. Rent actually paid is less than 10% of the base pay.

The typical compensation of a worker includes a base wage, allowances for things like housing, travel, and health care, as well as mandatory savings choices like gratuities and provident funds. Understanding wage structures is crucial for tax preparation as well as financial considerations. One such wage component is the house rent allowance, or HRA for short And HRA exemption calculator.


Above calculator helps you calculate the HRA amount you can claim to store Income Tax. But here are few points you need to consider:

The HRA calculator would supply you correct consequences when you supply right records of your Basic + DA factors of your salary, HRA quantity acquired and the lease paid via you, all figures on each year basis

It does no longer take into account the exchange in simple profits or hire factors in between the monetary year

If you stay in metro town then 50% of primary revenue will be regarded else 40% will be regarded in non-metro town to calculate your HRA exemption amount

This HRA calculator offers you a hard concept about the approximate quantity you can declare as HRA exemption to shop Income Tax.


The quantity you acquire as HRA (HRA full shape is House Rent Allowance) is now not completely tax exempted

The Tax exempt component ought to be minimal of the following calculations:

  1. Actual HRA acquired from employer
  2. 50 percentage of the ‘salary’ if the lodging is in the metro cities (Delhi, Mumbai, Chennai, Kolkata) or else forty percentage for different cities
  3. Excess hire paid yearly over 10 percentage of the annual ‘salary’

where Salary ability “Basic Salary + Dearness Allowance”

You can declare full HRA acquired in #1 solely when the quantity is greater in #2 and #3 calculations above

Let’s recognize this with the assist of examples below


Let’s consider below example of Rent, Basic Salary and HRA:

HRA Exemption Calculator using Excel by FinCalC
HRA Exemption Calculator & below are the calculations based on above calculation formulas:
HRA Exemption Amount Calculator
HRA Exemption Amount Calculator

#2 calculation above is minimum of all 3. So you can claim Rs. 95,400 as HRA and reduce this amount from Taxable income to calculate your Income Tax using Old Tax Regime.

Let’s understand how we reached to this figure:

Actual Rent = Rs. 1,20,000
10% of Basic Salary = 10 * Rs. 2,46,000 / 100
10% of Basic Salary = Rs. 24,600

So Actual Rent minus 10% of Basic Salary becomes Rs. 1,20,000 – Rs. 24,600 = Rs. 95,400


You can keep Income Tax by using claiming HRA quantity (based on above calculator) if you remain on rent, solely when you pick out Old Tax Regime to calculate your Income Tax. HRA exemption is now not allowed in new TAX regime for the reason that it has decreased Tax Slab rates.

Procedure to Use HRA Exemption Calculator Online :

To determine your yearly HRA benefits, follow these steps:-

Visit the HRA exemption calculator page.

Fill in the applicable fields such as your whole rent, HRA amount, dearness allowance, and simple salary.

Next, pick whether or not you stay in a non-metro metropolis or a metropolitan city.

Verify all your small print to forestall errors.

Press the ‘Calculate’ button.

After following the steps stated above, you will recognize how a good deal tax gain you can avail of whilst submitting your earnings tax returns. Keep in thinking that on sure internet pages, an HRA exemption calculator will be in the structure of sliders (not fields). Nonetheless, the performance stays the same.

Must Read Topics:



Leave a Reply

Your email address will not be published. Required fields are marked *