Calculate HRA Exemption For Income Tax | Step-by-Step Explanation With Example

By Medha Roy Chowdhury | May 19, 2019

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.

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Category: HRA Videos
Medha Roy Chowdhury

About Medha Roy Chowdhury

Square peg in a round hole, Medha reads whenever she gets the chance to. She is happiest when travelling and dreads having to choose between the hills and the sea. Dog lover at heart, she is in pursuit of adopting a few canine friends someday. Weird as it may be, she bakes when stressed. Previously a Market Research Editor by profession, she takes a keen interest in finance. When she is not reading, you’re sure to find her with her ukulele.

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