HRA tax exemption Calculator | House rent deduction in Income Tax Section

HRA Tax Exemption Calculator for Salaried Employees

Income Tax Exemption Calculation on House Rent Allowance for Central and State Government Employees with Rules and Regulations

The new rates of 7th Central Pay Commission House Rent Allowance with effect from 1.1.2016 such as 8%, 16%, 24% of basic salary

House Rent Allowance (HRA) is a consolidated amount paid to regular employees working in Government and Private organizations to adjust the expenses on rent. The house rent compensation allowance is a big support for employees to live in decent flats. Most of the occasions, the HRA element is calculated based on basic salary in the government and private sector also. And the classification of city of residence is a main criteria for determining HRA. There is no common formula for calculating HRA for men and women employees. According to the percentage notified by the Central or State Government on HRA, the calculation will be carried out in their salary slip monthly.

Also check: CG Offices Holiday List 2020 – PDF Download

House Rent Allowance is a tax-free income under Section 10(13A) of the Income-Tax. Central and State Government employees and also employees working in private sectors are getting House Rent Allowance is a major part of their salary package. HRA is given to compensate for expenses on rent for the residence of an employee. Currently, Central Government employees are getting HRA maximum of 24 percent of their basic salary (matrix pay). The minimum amount of HRA granting to the employees working in Metro cities is Rs. 4320 (minimum basic salary Rs. 18000). HRA

Simple Online HRA Income Tax exemption Calculator 2020

Title of Tool	Income Tax Exemption on HRA Calculator
Beneficiaries	Central Govt Employees
Feature	Deduction Details
Published on	1.7.2016
Updated on	1.12.2018
Inputs	Basic Salary, DA, HRA, Rent Paid and City Classificatin
Outputs	HRA and TA on New Basic Salary
Developed by	TEUT Digital Concepts

HRA Exemption Calculation for Govt Employees

House Rent Allowance is a Tax-Free Income under Section 10(13A) of the Income-tax Act, subject to the following conditions. House rent allowance [Section 10(13A)] of the Income-tax Act

Also check: HRA (House Rent Allowance) Calculator for CG Employees

As per section 10(13A), read with rule 2A of the Income-tax Act, the exemption in respect of HRA will be lower of the following amounts:

Also Check: Central Government Pay Matrix Table PDF

50% of salary, when the residential house is situated at Mumbai, Kolkata, Delhi or Chennai, and 40% of salary where residential house is situated at any other place.
HRA actually received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year.
Rent paid in excess of 10% of salary.

Salary will include basic salary, dearness allowance forming part of salary while computing all retirement benefits and commission based on fixed percentage of turnover achieved by the employee. Apart from this, salary for this purpose does not include any other allowances/perquisites.

Salary for this purpose shall be computed on due basis in respect of the period during which the accommodation is occupied by the employee in the previous year. Hence, any payments not pertaining to the previous year or not pertaining to the period of occupation of the accommodation shall be excluded.

HRA Revised Rates Table for Central Government Employees as per 7th Pay Commission

List of Latest Salary and DA Calculator for CG Employees:

Comments

Bharathi Bhat says

November 17, 2018 at 11:55 am

Sir, how to calculate HRA exemption in case of Govt Employee residing at Govt Quarters.

- M.K.Kumar says
  
  November 17, 2018 at 9:04 pm
  
  Residing government quarters they are not given HRA, so there’s no question of exception already execempted.
  
CHAITANYA NARAMSETTI says

July 1, 2018 at 5:57 pm

Wat about the hra examption from tax if the last rule results in neagtive

Income Tax Exemption in House Rent Allowance
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HRA Tax Exemption Calculator for Salaried Employees

HRA Exemption Calculation for Govt Employees

HRA Revised Rates Table for Central Government Employees as per 7th Pay Commission

List of Latest Salary and DA Calculator for CG Employees:

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