HRA is calculated on Salary (Basic +DA).For Metropoliton cities HRA is 50% of Salary and 40% for other cities.
For Eg> Basic= Rs. 5000/- pm ; DA=Not applicale - for a person working in metros
Then HRA= 50% of 5000= Rs. 2500/- per month
Similarly, if the person is working other than metro then HRA= 40% of 5000= Rs. 2000/- per month.
Hope you got ur query answered!!!
HRA is calculated as follows:-
1. 50% (Metropolis) or 40% (Rest of cities) of Basic
2. Actual rent paid - 10 % of basic
3. HRA (As per Appointment letter)
The least of the three is taken for exemption. If you still want to clarify you can cantact me at the links / number mentioned below.
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