Exemption u/s 10


HRA is given by the employer to the employee for reducing the burden of rent. HRA is exempt minimum of the following.

  1. Actual HRA received
  2. Rent Paid- 10% of Salary
  3. For Metro Cities- Delhi, Kolkata Chennai and Mumbai 50% of Basic, for Other location 40% of Basic

Rules : This exemption is allowed if rent is paid by the employer.

Salary : Salary is taken on due basis for the relevant period for which rent was paid.

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