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HRA Three-Limit Exemption Scenario

Compare received housing allowance, qualifying rent and the location percentage using a consistent salary period.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Basic salary of 10000, qualifying DA of 2000, HRA of 4000 and rent of 5000 give an exemption of 3800 and taxable HRA of 200 in the 50% location branch.

Exemption = min(received HRA, max(0,rent − 0.1 salary), location × salary).

Worked example

Enter these known values and leave the other values blank.

Basic pay
10000 ₹ / yrs
DA received
2000 ₹ / yrs
HRA received
4000 ₹ / yrs
Actual rent paid
5000 ₹ / yrs
Exempted HRA
3800 ₹
Taxable HRA
200 ₹

Assumptions and limitations

  • This is the old-regime HRA arithmetic for an eligible rented residence, not a tax-regime or eligibility decision. The salary basis includes qualifying DA; include any qualifying turnover commission in the entered salary basis.
  • The 50% branch concerns Mumbai, Delhi, Kolkata and Chennai; other locations use 40%. Use the same period for salary, allowance and rent.
  • Captured restrictions limit HRA and DA to half of basic pay. These are model input restrictions, not statutory ceilings on the amounts received.
  • Enter all monetary amounts in a single currency. Retained currency conversion factors are a captured static snapshot, not live exchange rates.
  • Clear a known field before solving for it. Locks retain chosen inputs; inconsistent locked values need correction. Reset restores the captured defaults.

Common questions

What does the worked example show?

Basic salary of 10000, qualifying DA of 2000, HRA of 4000 and rent of 5000 give an exemption of 3800 and taxable HRA of 200 in the 50% location branch.

What assumptions limit this calculation?

This is the old-regime HRA arithmetic for an eligible rented residence, not a tax-regime or eligibility decision. The salary basis includes qualifying DA; include any qualifying turnover commission in the entered salary basis.

References

Use the documented finite scenario domain. taxable hra cannot be negative.

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