Understanding HRA Deductions: Can It Exceed 50% for Non-Taxable Salaries?

Dear Professionals,

Can HRA be more than the basic salary?

Is it possible for us to deduct HRA more than 50% if the employee's salary is not under the tax slab?

Thank you for your help.

It is not practically possible. Usually, HRA is a percentage of the basic salary, and even in income tax calculations, it has a relationship with the basic salary.

HRA Percentage in Relation to Basic Salary

In general, HRA ranges from 50 to 60% of the basic salary at higher salary levels and a minimum of 5% at lower levels (as per statutes in some states of India - WB HRA Act - 5%, the same as Maharashtra and some other states).

Regards, S K Bandyopadhyay (WB, Howrah) CEO USD HR Solutions [Phone Number Removed For Privacy-Reasons]