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.
- Actual HRA received
- Rent Paid- 10% of Salary
- 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.