HRA Exemption Calculator

House Rent Allowance Exemption Calculator for Tax Saving for the year 2017-18.

HRA Exemption Calculations

HRA exempt from tax calculation detail:

If you are salaried person then you can claim House Rent Allowance (HRA) to meet your rented accommodation-related expenses. Salaried individuals who live in a rented house can claim this exemption and bring down their taxes. HRA can be fully or partially exempt from tax. HRA exemption calculator will help you calculate what portion of the HRA you receive from your employer is exempt from tax and how much is taxable.

If you are not living in a rented accommodation but still get house rent allowance, the allowance will be fully taxable.

How much of my HRA is exempt from tax?

The entire HRA received is not always fully exempt from tax. The least of the following three will be taken to exempt from tax:
HRA received from your employer

  1. Actual rent paid minus 10% of salary
  2. 50% of basic salary for those living in metro cities
  3. 40% of basic salary for those living in non-metro cities

Consider following example to understand the HRA exemption calculations:

Sonu lives in Ahmedabad.
His basic salary: Rs 30,000 per month
Rent he pays: Rs 16,000 a month
And HRA Received: Rs 13,000
The HRA exemption he would get would be the least of the following:

Description Amount
40% of basic salary Rs 12,000
HRA received Rs 13,000
Excess of rent paid over 10% of salary Rs 13,000
The least of the above three is exempt Hence, exemption would be. Rs 12,000
HRA chargeable to Tax Rs 1,000

And, HRA Chargeable tax will be calculated as:
HRA Chargeable tax = Least of above three - HRA amount
In our example HRA amount is Rs 13,000 and least of all three amount is Rs 12,000 then HRA chargeable tax is Rs 1,000.

Home Rent Allowance - Frequently Asked Questions

Recent Comments
No Comments