EMI Calculator
Looking to optimize your tax savings?
If you're a salaried employee, knowing how to make the most of House Rent Allowance (HRA) is key to maximizing your tax savings. The HRA Calculator makes this easier by helping users optimize their exemptions, leading to greater tax savings. By using the HRA Calculator, you can fully unlock the benefits of your HRA, maximizing exemptions and improving your overall financial planning.
For example: Arun lives in Mumbai and has a basic salary of Rs. 50,000 p.m. He receives HRA of 25,000 from basic salary and pays a rent of Rs. 15,000. His HRA exemption will be least of the following:
>> HRA received: Rs. 25,000 x 12 = Rs. 3,00,000
>> Rent paid: (Rs. 15,000 x 12) - 10% of basic salary= Rs. 1,20,000
>> 50% of basic salary: [(Rs. 50,000 x 12) x 50%] = Rs. 3,00,000. Comparing these figures, the lesser amount is Rs. 1,20,000. Therefore, Arun is eligible for an exemption of Rs. 1,20,000 based on his HRA calculation.