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Tax rules India - Calculate how much tax can you save from HRA

A simple tool to calculate annual tax savings from HRA :
http://www.indiainfoline.com/personalfinance/calculators/tax/hra-exemption

A more accurate tool is an excel which you can download from here:
http://taxguru.in/income-tax/house-rent-allowance-hra-taxability-and-workingcalculation-of-taxable-hra.html
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Rules to calculate:

The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available.

Exemption of HRA will be up to the the minimum of the following three:

1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

Ref:
http://taxguru.in/income-tax/house-rent-allowance-hra-taxability-and-workingcalculation-of-taxable-hra.html

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