What is the taxability of House Rent allowance HRA?
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Least/minimum of the following is exempt (Not taxable/deducted from total HRA received)
(a) Actual amount of HRA received
(b) Rent paid Less 10% of salary
(c) 50% of salary if rented accommodation is situated at Kolkata, Chennai, Mumbai and Delhi
or
40 % of salary if the rented accommodation is situated at other than Kolkata, Chennai, Mumbai and Delhi.
In case of no rent is paid then exemption will be zero.
Syed
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