Income Tax: EXPLAINED! Check HRA calculator, know taxability, exemption of House Rent allowance (HRA)
Many Income Tax payers often remain confused about the taxability and income tax exemption of House Rent allowance (HRA).
Many Income Tax payers often remain confused about the taxability and income tax exemption of House Rent allowance (HRA). Income Tax India website, https://incometaxindia.gov.in/, explains what is the taxability of House Rent allowance (HRA) under its FAQs section.
Income Tax India website says
Least/minimum of the following is exempt (Not taxable/deducted from total HRA received)
(a) Actual amount of HRA received
(b) Rent paid Less 10% of salary
(c) 50% of salary if house taken on rent is situated in Kolkata, Chennai, Mumbai and Delhi
or
40 % of salary if the house is taken on rent is NOT situated in Kolkata, Chennai, Mumbai and Delhi.
Check HRA calculator:-
https://incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculato...
How to calculate HRA
Enter Basic salary
Enter DA forming part of salary
Enter Commission (as % of turnover achieved by the employee)
Enter HRA Received
Enter Rent Paid (Tick if residing in metro city)
Enter Exempted House Rent Allowance
Enter Taxable House Rent Allowance
After entering details in all the given fields in HRA calculator in https://incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculato..., click calculate to know the HRA calculator result.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Tata Motors, Muthoot Finance and 3 more: Axis Direct recommends buying these stocks for 2 weeks; check targets, stop losses
06:20 PM IST