As a follow-up to my wayback post on calculating the income tax exemption on house rent allowance, here’s a simple calculator that tells you how much income tax exemption you can get through the house rent allowance component of your salary.
You can also use this calculator to test various scenarios and ask your employer to structure your salary accordingly.
Download the House Rent Allowance (HRA) Exemption Calculator.
Further reading:
- How to Calculate the Income Tax Exemption on House Rent Allowance (HRA)?
- Why It’s Not Such a Good Idea to Take a Loan from Your Employer Even if It’s Interest Free?
- Tip Tuesdays: Why You Should Opt for Employees’ Provident Fund (EPF) as Part of Your Salary if Your Employer Offers the Option
- Real-life Lessons: The Value of an Emergency Fund
- Ask the Readers: How Can I Get a [Duplicate] Copy of My Acknowledged Income Tax Returns?
{ 13 comments… read them below or add one }
This is cool very helpful.
Good Job
It seems that the calculation is wrong for Figure #2 Actual house rent paid by you less 10% of your basic salary; here 10% has been reduced for only one month; not for 12 months i.e. it should be (10% per month) *12.
useful
Rajesh,
Thanks for pointing out the error. I have corrected the worksheet accordingly.
Thanks for giving help H.R.A. CALCULTIONA in income tax.
what is the definition of salary after the implementation of 6th pay commission is it only basic pay grade pay or is it basic pay grade pay and non practicing allowance please clarify
let me know the definition of salary is it basic pay grade pay only or basic pay grade pay and non practicing allowance
Thanks a lot… I was bit confused with the HRA calculation. Now its clear. Thanks a lot.
its most helpfull
Hi, could you please let me know how HRA is to be calculated - My basic pay (consolidated pay) is 48000, the employer do not give any HRA neither do they deduct any TDS. I have paid advance tax but I have no idea how to calculate HRA.
Thanks in advance.
I pay a rent of 12000 pm
I went through your HRA calculator- but because my employer does not give me a HRA- the calculator shows HRA as Zero.
I want to know if there is provision for a person getting a consolidated salary to get an exemption for the rent we pay?
Thanks once again