# Tax Exemption from HRA

**URL:** <https://community.greythr.com/t/tax-exemption-from-hra/842>\
**Category:** Ask the Community\
**Created:** [September 8, 2020, 7:27am UTC](https://community.greythr.com/t/tax-exemption-from-hra/842 "2020-09-08T07:27:46Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![Official-Greytribe](https://avatars.discourse-cdn.com/v4/letter/o/0ea827/32.png) [@Official-Greytribe](https://community.greythr.com/u/Official-Greytribe)\
**Post date:** [September 8, 2020, 7:27am UTC](https://community.greythr.com/t/tax-exemption-from-hra/842/1 "2020-09-08T07:27:46Z")

</div>

**#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?

---

<div class="post-metadata">

**Author:** ![Official-Greytribe](https://avatars.discourse-cdn.com/v4/letter/o/0ea827/32.png) [@Official-Greytribe](https://community.greythr.com/u/Official-Greytribe)\
**Post date:** [September 8, 2020, 7:28am UTC](https://community.greythr.com/t/tax-exemption-from-hra/842/2 "2020-09-08T07:28:31Z")

</div>

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.