Tax HRA Calculator India

How this HRA calculator APP works?

1.Select your location Metro or Non Metro.
2.Enter the Basic salary as per payslip.
3.Enter the HRA received from employer.(Refer payslip to find the HRA received amount)
4.Enter the House rent paid amount
5.Once enter the values click on calculate button, then calculated Tax exemption HRA amount appear in Non Taxable HRA Amount field.

How to calculate tax exemption HRA for salaried employees based on location in India?

HRA(House Rent Allowance) is calculated based on Basic salary,HRA received from your employer,amount of rent paid and City which you are staying.

Metro Location:

Least value from below 3 is considered as Non Taxable HRA.

A. If metro then 50% percentage of Basic salary.
B. Actual HRA received - 10% of Basic salary.
C. HRA received

Non Metro Location:

Least value from below 3 is considered as Non Taxable HRA

A. If non metro then 40% percentage of Basic salary.
B. Actual HRA received - 10% of Basic salary.
C. HRA received

Refer the below example and screenshots for your reference:

Assume the below values for both Non Metro and Metro location.

Basic salary : 10,000
HRA Received: 7,000
House Rent paid: 8,000

Calculation for Metro Location:

50% of Basic salary = 5000
HRA Received – 10% of Basic salary = 7000 – 1000 = 6000
HRA Received =7000

Non Taxable HRA Amount= Least value of (5000,6000 and 7000) is 5000.
Taxable HRA amount = HRA received – Non Taxable HRA amount = 7000 – 4000 = 3000

Non taxable HRA Amount is 5000.
Taxable HRA Amount is 2000

Calculation for Non Metro Location:

40% of Basic salary = 4000
HRA Received – 10% of Basic salary = 7000 – 1000 = 6000
HRA Received =7000

Non Taxable HRA amount= Least value of (4000,6000 and 7000) is 4000.
Taxable HRA amount= HRA received – Non Taxable HRA amount = 7000 – 4000 = 3000

Non taxable HRA Amount is 4000.
Taxable HRA Amount is 3000