Understanding HRA Calculation: What Are the Tax Deductions, Rules, and Exceptions?

Sanjay sachdeva
Hi, please provide me with information on HRA calculation, tax deductions, rules, and exceptions.
priya_bodke
Urgent Request for Salary Break-up Review

I am attaching some files. Please see and comment on whether the salary break-up is correct. Also, will all of it be tax-free, as that is what I want? Thank you. It's very urgent.

Regards.
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jaynarayan.modi
Dear Mr. Sanjay/Ms. Priya, this is a communication gap and ego problem. But don't worry, please find the details below; I think this will be helpful.

Basic: (Minimum wages & Maximum no Limit)

HRA: Maximum allowed is 50% of Basic in metro cities or 40% of Basic in non-metro cities.

T.A: Between office to residence, Max - Rs. 800/- (Income Tax-exempt up to 800 per month, no proof required).

Education Allowance: 100 per child, subject to a maximum of 2 children. Hence, a maximum of Rs. 200.00 is exempt.

Medical Reimbursement: Maximum Rs. 1250.00 per month is exempt only if original bills are provided.

Food: Non-cash component exempt up to 1000.00.

Regards,
Jay
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