HRA Exemption

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Financial Calculators
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H.R.A Calculator
House Rent Allowance, as the term suggests, is an
allowance granted by employers for employees to
meet their house rent expenses. The salary of an
individual will determine the HRA granted to
him/her.
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What is HRA?
The House Rent Allowance (HRA) is an essential
component of an individual's salary that defines
the total amount allotted by the employer towards
the employee's accommodation as rent. The HRA
amount can be beneficial for an employee as it is
calculated for tax deductions for a particular
financial year. The HRA tax benefits are only
applicable for those employees who stay in a
rental accommodation Various factors, such as
the entitlement to 50 of the basic salary, if
the employee is staying in a metro city (40 for
other cities) is based on HRA Exemption.