How to calculate income tax exemption for House Rent Allowance?

The deduction available is the least of the following amounts:

  • Actual House Rent Allowance 'HRA' received
  • 50% of [basic salary + Dearness Allowance 'DA'] for those living in metro cities
  • 40% of [basic salary + DA] for those living in non-metros
  • Actual rent paid should be less than 10% of basic salary + DA

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