ClearTax helps you easily claim House Rent Allowance (HRA) when you e-file on http://cleartax.in.
Learn more about HRA and whether you’re eligible for it or not by reading our guide: https://goo.gl/xvinPY
You can also check out our HRA Calculator: https://goo.gl/xey2mD
What is HRA?
Salaried individuals who live in a rented house can claim House Rent Allowance or HRA to lower taxes. This can be partially or completely exempt from taxes. The allowance is for expenses related to rented accommodation. If you don’t live in a rented accommodation, this allowance is fully taxable.
How is tax exemption from HRA calculated?
The deduction available is the minimum of the following amounts:
– Actual HRA received
– 50% of [Basic salary + DA] for those living in metro cities (40% for non-metros)
– Actual rent paid less 10% of salary