HRA Exemption

₹9,500

Taxable HRA

₹15,500

HRA Received

₹25,000

Exemption Calculation

HRA exemption is the minimum of the following three conditions:

1. Actual HRA Received

HRA received from employer

₹25,000

2. Rent Paid - 10% of (Basic + DA)(Minimum - Exemption Basis)

₹15,000 - 10% × ₹55,000

₹9,500

3. 40% of (Basic + DA)

40% for Non-Metro cities

₹22,000
HRA exemption is the minimum of three conditions: (1) Actual HRA received, (2) Rent paid minus 10% of Basic + DA, (3) 50% of Basic + DA (metro) or 40% (non-metro). The remaining HRA is taxable.