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<h1>House Rent Allowance exemption depends on least of HRA received, rent minus salary portion, or metro/non-metro salary allowance.</h1> HRA exemption is the least of: actual HRA received; rent paid after deducting a fixed percentage of salary; or a salary-based allowance that is larger for specified metropolitan cities than for other locations. If no rent is paid, exemption is nil. This provides a formulaic computation to determine the tax-exempt portion of HRA within salary income.