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Former Member
Jul 08, 2014 at 04:58 AM

HRA

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Dear Experts

For HRA Exemption (India ) i have googled and find out the below points but i did not understand the 1st Point pls guide me

1. Rent paid in excess of 10% of basic salary.

2. Actual HRA received by the employee.

3. Forty percent of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city

From the above “least of three” rule, it is clear that HRA exemption amount is determined by a number of factors — Basic pay, location of the residence, rent paid by the employee, and the HRA paid to the employee.

For Eg: my Basic is 15000 living in metro city where my HRA is 50 of basic i,e 7500 now will i get 7500 as tax exemption ??? or lesser than that ????or more than that??