Tell me the three basic conditions to calculate HRA?

Dear All,

Can anybody please tell me the three basic conditions to calculate HRA? House Rent Allowance. It's urgent!

Gauri

Hi Gouri,

HRA is calculated on Salary (Basic + DA). For Metropolitan cities, HRA is 50% of Salary, and 40% for other cities. For example, if Basic = Rs. 5000/- per month; DA = Not applicable - for a person working in metros, then HRA = 50% of 5000 = Rs. 2500/- per month. Similarly, if the person is working other than a metro, then HRA = 40% of 5000 = Rs. 2000/- per month.

Hope you got your query answered!!!

Regards, Rachna

Dear Member,

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 contact me at the links/number mentioned below.

Regards,
Santosh
Email: hr.santosh@gmail.com
Email: santoshkumarhr@gmail.com
Phone: 09350825655

You can check this post https://moneyjigyasu.com/hra-exemption-rules/. It also provides a link to a calculator for HRA exemption.

Can we keep HRA at 20% of the basic salary?

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