What HRA exemption applies on ₹20,000 rent in a metro city?
Based on these numbers, the exempt HRA amount is about ₹1,90,000 — ₹60,000 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.