However, I’ve received a few requests to develop a HRA Tax Calculator in excel to make it easier for a layman to understand and calculate. So, here’s a HRA tax calculator.
You need to input the following information for calculating taxable and exempt portion of the HRA:
1. Basic Pay + DA (if any) p.m.
2. HRA received p.m.
3. Rent paid p.m.
4. City of Residence (Enter "M" for Metro & "N" for Non-Metro)
However, it is very rare that all the four variables remain constant during the entire financial year. There can be increase in the basic pay and HRA received (due to annual increments or change of job); city of residence and rent paid might also change. As already pointed out in HRA FAQs, when there is change in any of the four factors, HRA tax exemption is to be computed on monthly basis.
Thus, I’ve prepared two HRA tax calculators. The first HRA calculator is meant for calculating HRA tax exemption when all the four parameters remain same through out the financial year. Second HRA calculator is to be used if there is a change in any of the four variables. In case you still need any clarification, please feel free to ask.
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4. HRA - FAQs & Tips
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