How much House Rent Allowance is exempt from taxes?

I receive HRA as part of my salary, how much of it is exempt from income income tax?


The lowest of the following is exempt House Rent Allowance from Income Tax:

  • Actual HRA received from an employer
  • 50% (for Metro) or 40% (for Non-Metro) of Basic Salary
  • Annual Rent Paid – 10% of Basic Salary

You can use HRA Calculator to do the calculation for you :slight_smile: