How, you ask? How much, you ask? Am I eligible, you ask? The best thing about HRA is that you can use it to save taxes as it is eligible for tax deductions… Further, some companies allow flexible CTC packages where you can choose your own HRA percentage. So if you are working in a metro with higher rents, you may be getting more than your counterparts in smaller cities with lower rents. In most cases this percentage stays constant, but in some companies the percentage may vary by the city. How much HRA you get, is typically calculated as a percentage of your overall salary. Employers primarily pay this allowance for employees to take care of their residential accommodation expenses at place of work. What is HRAĪt its most basic, HRA is essentially a rent allowance. I will cover basics, exact taxation rules applicable to HRA as well as common questions that typically arise when one is dealing with house rent allowanace.
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