Understanding House Rent Allowance: What's the Max and Min % of Basic Pay?

House Rent Allowance Inquiry

I want to know about the house rent allowance. What is the maximum and minimum amount that can be given to employees under the house rent allowance (% of Basic Pay) as per income tax rules?

Regards,
S. Shah

Please find the details listed below:

- Actual house rent allowance received from your employer
- Actual house rent paid by you minus 10% of your basic salary
- 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

Good evening all, thanks to Mahesh for informing me about the house rent allowance tax-exempt method. Could anyone please inform me about the maximum amount of House Rent Allowance that can be provided to an employee by the employer?

One of my friends is receiving HRA as follows:
BASIC (INCLUDING DA): 6900.00
HRA - 42% OF BASIC (INCLUDING DA) - 2898

Could anyone clarify if the HRA amount can be calculated based on (BASIC + DA) or only on (BASIC)? There is no segregation of Basic and DA.

Thanks,
S. Shah

Mostly, Basic will include Basic + DA. If you have Basic and DA as separate attributes in the salary breakup, then the HRA amount is calculated using the sum of Basic + DA.