House Rent Allowance (HRA)

House Rent Allowance (HRA) is a component of an employee's salary that paid by an employer to cover the employee's rental accommodation expenses. It is included in an employee's salary and is generally offered to employees who do not receive a company-provided accommodation. The of HRA is to provide employees with financial assistance for their housing expenses, which can help the rising cost of living and hig

The amount of HRA is calculated on the employee's salary, the location of their rented accommodation, and the rent paid., the allowance is a percentage of basic salary, ranging from 40 to 60 percent, on the city in which the employee is located.

Employees receiving HRA can claim tax benefits the Income Tax Act, as it is exempt from tax up to a certain limit, subject certain conditions. It is important for employees to provide proper rent receipts and other supporting documents, such a rent agreement, to claim HRA deductions in their income tax returns.