Tax Exemption from HRA

#CommonQuestionAnswered

We read employees are eligible for tax benefit for House Rent Allowance under the Income Tax Act. How is Tax Exemption from HRA Calculated?

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Answer:

"The deduction available is the least of the following amounts:
a. Actual HRA received.
b. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or
c. Actual rent paid less 10% of basic salary + DA"

Hope the information is helpful. In case of questions, ask in the comments below.

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