What is my HRA exemption paying ₹15,000 rent in a non-metro city?
Paying ₹15,000 monthly rent in a non-metro city, with ₹4,00,000 basic salary and ₹1,60,000 HRA received, the exempt HRA amount is about ₹1,40,000 — ₹20,000 remains taxable.
What is HRA exemption?
Under Section 10(13A), the HRA exemption is the least of: actual HRA received, rent paid minus 10% of basic salary, or 50% of basic salary (metro) / 40% (non-metro). Only available under the old tax regime.