How to calculate the HRA Exemption in Income Tax U/s 10(13A) with Automatic HRA Calculator U/s 10(13A)

The exemption of House Rent Allowance is computed as the following manners U/s 10(13A)

The actual amount of HRA received by the employee from his/her employer
50% of the Salary for individuals residing in Metro Cities (Delhi,Mumbai,Chennai or Kolkata)
and 40% other Cities.
Rent paid in excess of 10% of Salary (Basic Pay + D.A.)[Grade pay also include in case of Govt employee]

For an Example :-

For Kolkata City - [Metro City]

Basic Pay Rs. 3,00,000/- P.A.
D.A. Received Rs. 60,000/- P.A.
House Rent Received Rs. 2,40,000/- P.A.
House Rent Paid by the employee Rs. 1,20,000/- P.A.
Hence the Calculation will be as follows :-
The Actual H.R.A. Received Rs. 2,40,,000/-
50% of the salary [Basic Pay + D.A.] = 1,80,000/- [ For Metro City]
Excess of rent paid over 10% of salary Rs. 1,20,000 -( 10% of Rs.3,60,000[B.pay + D.A.] =Rs. 84,000

Here is the HRA exemption will be entitled Rs. 1,20,000 -36,000 = 84000/- Relief

And Rs. 1,56,000 will be Chargeable to Income Tax.

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