HRA or House Rent Allowance is simply a monetary benefit given to employees by companies for expenses related to rented accommodation.
The minimum tax-exempt portion of HRA received will be calculated based on the following rules:
The actual rent that is paid should be less than 10% of the basic salary.
In case you’re staying in a metro, 50% of the basic salary and 40% if you live in a non-metro city.
Actual HRA component of your salary.