Best answer
How to calculate House Rent Allowance (HRA) from Basic salary? Step 1:Select your pay matrix levelStep 2: Select your basic salary of your level pay hierarchy Step 3: Select your admissible percentage of HRA House Rent Allowance Calculation Formula
People also ask
How to calculate House Rent Allowance (HRA)?
1 The actual rent paid by the employee subtracted from 10% of her/his basic salary. 2 The House Rent Allowance (HRA) amount allotted by the employer 3 50% of the employee basic salary, if s/he is staying in a metro city (40% for non-metro cities)
How much house rent allowance should you pay on your salary?
50 percent of your base salary if you stay in a metro city and 40 percent in a non-metro city. A few of your salary components can be exempted from tax without the requirement to invest in any of the instruments of tax-savings. One of these components is house rent allowance.
What is rent allowance?
House Rent Allowance is an allowance a sum of money regularly paid to meet expenditure relating to rent. Following is the format of Salary Slip for your reference. Download salary slip in Excel form
What is house rent allowance under Income Tax Act?
The provisions of the Income Tax Act Section 10 (13 A) regulate the house rent allowance. Only salaried individuals can avail the benefits of house rent allowance. You are exempted from making a claim for HRA if you are a self-employed individual. You can avail this exemption only if you live in a rented accommodation.