gauritomar Started The Discussion:
Dear All, Can anybody pls tell me the three basic conditions to calculate HRA?? House Rent Allowance Its urgent!!! Gauri
Hi Gouri ,
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.
See the Calculator and method of calculation of HRA (House Rent Allowance) HRA Calculation : Calculate House Rent Allowance (HRA) Exmption ? Tax India
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Interesting Relevant Discussions