Hi All please help me out our company is situated at mumbai, & we are providing hra deduction to all employees @ 50% of basic salary as per income tax laws as the mumbai is metro city, now one of the employee produced rent receipts for his stays at rental house in Thane ( which is non-metro city ), please let me know wheather we give him deduction of hra @ 50% of basic salary ( as our company is situated at Metro city ) or wheather we give him deduction of hra @ 40% of basic salary ( as he is from Thane - NON - METRO city ) please help me its urgent.