Exemption u/s 10

HRA EXEMPTION CALCULATION

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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