Скачать или смотреть Calculation of HRA in Income Tax Act, 1961 | HRA par kitna tax | new tax regime | old tax regime

Calculation of HRA in Income Tax Act, 1961 | HRA par kitna tax | new tax regime | old tax regime

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Calculation of HRA in Income Tax Act, 1961.

House Rent Allowance (HRA) is a component of salary provided by employers to employees to meet their rental expenses for accommodation. Under the Income Tax Act, HRA is governed by Section 10(13A). The Act provides for the exemption of a portion of the HRA from taxation, subject to certain conditions:

Exemption Calculation: The least of the following three amounts is exempt from tax:

1. Actual HRA received from the employer.
2. 50% of salary (basic salary + dearness allowance if applicable) for those living in metro cities (40% for non-metro cities).
3. Actual rent paid minus 10% of salary.

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