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Discover the HRA full form in salary and learn how it impacts your income. Explore tax benefits and calculations now for smarter financial decisions! What is HRA (House Rent Allowance), and How is HRA Exemption Calculated? HRA full form is House Rent Allowance, a key component of your salary designed to cover rental expenses. It offers a significant tax benefit under Section 10 (13A) of the Income Tax Act, but its exemption amount is determined by specific calculation rules. Grasping these is fundamental for employees to accurately claim HRA and optimize tax savings. What does HRA mean? House Rent Allowance ( HRA ) is a benefit or allowance available to a salaried individual. It is the amount paid by the employer to his employee as a part of the salary to meet the cost of living in rented accommodation. The exemption amount is calculated based on salary, HRA received, and rent paid, aiming to reduce the taxable income of employees who live in rented accommodations. HRA For Salaried Individuals Under Section 10 (13A), in accordance with Rule 2A of the Income Tax Act, individuals receiving a salary have the provision to seek exemptions on their House Rent Allowance ( HRA ). The amount of HRA exemption that can be claimed depends on:- The actual HRA received from the employer, Rent paid by the ...
