Glossary
What is House Rent Allowance (HRA)?
Also known as: HRA.
House Rent Allowance, or HRA, is a component of salary in India paid towards rented accommodation, part of which can be exempt from income tax when certain conditions are met, with the exempt amount set by the least of three defined limits.
HRA is a common line in an Indian salary structure. The exemption is not the whole allowance: the income-tax rule exempts the smallest of three figures, which depend on the rent paid, the salary and whether the home is in a metro city.
The rules and the definitions change, so Capstan asserts no rate. The HRA exemption calculator works the arithmetic from the figures you enter, and anything you rely on should be confirmed against the current official position.
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