HR Exemption Calculation

As per the Indian income tax law, the HRA exemption should be calculated as the least of the following.

• 1. Rent paid in excess of 10% of basic salary.
• 2. Actual HRA received by the employee. 
• 3. 40% of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city.

From the above “least of three” rule, it is clear that HRA exemption amount is determined by a number of factors — Basic pay, location of the residence, rent paid by the employee, and the HRA paid to the employee.

• Section 80C 80CCC Deductions
• Section 80D 80DD 80DDB
• Section 80 Deductions
• Section 80G 80GGB 80GGC Deductions
• HRA Exemption Calculation
• Deduction Table
• Goods And Services Tax
• Tax Saving