Think calculating your HRA exemption is tough? Watch this video and see how simple it actually is!
House Rent Allowance (HRA) is an allowance granted by employers to their employees to meet their house rent expenses. The HRA of a salaried individual is primarily based on the following factors:
- City of residence
- Basic salary
If an individual does not live in a rented accommodation, the entire HRA component of his/her salary is taxable. On the other hand, if one pays rent regularly, a part of the HRA component is exempt from tax.
Now that you’re aware of how to claim tax benefits on the HRA component of your salary, if you also want to get your finances in order, you may want to check out these products.