20 March 2015
In case assessee stays in his own house, nothing is deductible and the entire amount of HRA received is subject to tax. If the Assessee stays in rented house, the exemption of HRA will be available up to the the minimum of the following three options: 1) Actual house rent allowance received from your employer 2) Actual house rent paid by you minus 10% of your basic salary 3) 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro.