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Answer Posted / satyaki_raju@yahoo.com
HRA house rent allowance which is given by the employer to
teh employee to meet the rent of his residence. But some
portion of allowance will be exempted from taxable income
basing on the below rule
1.Actual HRA
2.Rent paid -10% of salary
3.50% of salary in case of metro cities and 40% of salary
in other places.
The least of the three will be exempted from taxable income
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