HRA Calculator

The tool computes HRA exemption under Indian income tax provisions. It requires monthly base salary, HRA received, rent paid, and city category (metro or non-metro). It uses annualization to align with tax-year calculations.

Core logic: Exemption is the minimum of three quantities: HRA received annually, rent paid minus 10% of basic annual, and 50% of basic annual for metro cities or 40% for non-metro. If rent paid is below the 10% threshold, exemption is limited by 10% of basic annual. The calculator handles rounding to the nearest rupee and maintains precision for monthly and annual outputs. Example: basic 40,000/month, HRA 20,000, rent 12,000/month, metro city. Basic annual = 480,000; HRA annual = 240,000; Rent-10% = 144,000 − 48,000 = 96,000. 50% of basic annual = 240,000. Exemption = min(240,000, 96,000, 240,000) = 96,000 annually, i.e., 8,000 per month. The tool returns both annual and monthly figures and flags when inputs violate standard assumptions.

Outputs: Exempt HRA annual and monthly, taxable HRA annual and monthly, and the inputs used for traceability. It supports edge cases like metro vs non-metro city classification and ensures values are non-negative. It does not apply other deductions or allowances beyond HRA.