What is House Rent Allowance (HRA) in Salary?
What does it mean by House Rent Allowance (HRA)?
HRA or House Rent Allowance is a salary component paid by the employer to employees for meeting the accommodation expense of renting a place for residential purposes. HRA forms an integral component of a person's salary. HRA applies to both salaried as well as self-employed individuals. HRA for salaried people is accounted for under section 10 (13A) of the Income Tax Act in accordance with rule 2A of Income Tax rules. Similarly, self-employed individuals are not considered for HRA exemption under this section but can claim tax benefits under section 80GG of Income Tax Act.
rent paid
of
rural)
How is HRA calculated? ❏ Factors that affect HRA Calculation: Salary HRA Received Actual
City
residence (metro, non-metro or
❏ HRA Calculation: Let us take an example of Amit who stays in Delhi and earns a salary of Rs.40,000 per month.
Example of calculation
Description
House Rent Allowance (HRA) is a component of our salary provided by the employers for the rent of the house. Get the in-depth information about it only on Insider by Finology.
Url :https://insider.finology.in/tax/house-rentallowance-hra
