Confusion on HRA exemption.

Most of us would be aware of the 3 rules for calculating HRA exemption and how it works .


As per the Indian income tax law, the HRA exemption should be calculated as the least of the following.

1. Rent paid in excess of 10% of basic salary.

2. Actual HRA received by the employee.

3.  40% of BASIC ( non metro) (50% if metro)  )

If  during a particular year

1) a person remains unemployed for some time or
2) changes employment between metro/non metro and his HRA and rent paid change
3) remains as salaried employee for a particular period of the year only
4) HRA / Rent changes when  working for the same company

and many more such scenarios, how to calculate HRA exemption ( at a yearly/ monthly level)

There is no definite answer I could figure out ,but the following link sounds logical.

If any of the readers have more authentic information, please do drop a mail

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