HRA
Definition
House Rent Allowance — a component of salary received by employees to meet rental expenses. HRA exemption under old regime is the minimum of: actual HRA received, rent paid minus 10% of basic salary, or 50/40% of basic salary (metro/non-metro).
Formula
Exempt HRA = min(Actual HRA, Rent − 10% of Basic, 50%/40% of Basic)