HRA Exemption Rules
House Rent Allowance (HRA) is a common component of your salary. You can claim tax exemption on it if you live in a rented house. The exemption is the minimum of the following three:
- Actual HRA received from employer.
- 50% of Basic Salary for Metro cities (Delhi, Mumbai, Kolkata, Chennai) OR 40% for Non-Metro cities.
- Actual Rent paid minus 10% of Basic Salary.