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of <h1>Understanding HRA Tax Exemption: Calculate by Actual HRA, Rent Paid Minus 10% Salary, or 50%/40% Salary</h1> The tax exemption for House Rent Allowance (HRA) is determined by the least of the following: the actual HRA received, the rent paid minus 10% of the salary, or 50% of the salary if the accommodation is in Kolkata, Chennai, Mumbai, or Delhi (40% for other locations). If no rent is paid, no exemption is allowed.
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