How to save Income Tax: HRA calculation made easy with this tool - Get answers of all your queries
Income Tax Calculator: The current Financial Year is about to end in a month. With this, most of the salaried individuals are also concerned about how to save income tax. If you see your salary slip, you will find a major portion of your salary is categorised under House Rent Allowance (HRA). Many salaried individuals want to know about what portion of their HRA is taxable and exempted as per the laws of Income Tax department.
Income Tax Calculator: HRA taxability and exemption
House Rent Allowance received by an employee/salaried individual is taxable. House Rent Allowance received by an employee/salaried individual is taxable. However, exemption is available under section 10(13A).
This Income Tax HRA calculator by Indian government's Income Tax department enables calculation of both taxable and exempt portion of HRA. Here is how to access it and how to calculate HRA taxability and exemption.
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Income Tax, HRA Calculator: Check step-by-step guide:-
1- Log on to https://www.incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculator.aspx
2- Enter Basic Salary
3- Enter DA forming part of salary
4- Enter Commission (as % of turnover achieved by the employee)
5- Enter HRA Received
6- Enter Rent Paid
7- Put Tick if residing in metro city
It's done! You will get Exempted House Rent Allowance and Taxable House Rent Allowance. (See image for better understanding)
Income Tax Calculator: Advisory and disclaimer
It is important to note that with this HRA calculator, Income Tax Department has given an advisory too. It reads, "Information relates to the law prevailing in the year of publication/ as indicated . Viewers are advised to ascertain the correct position/prevailing law before relying upon any document."
Moreover, there is a disclaimer by Income Tax Department. It says, "The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc."
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