Priyanka — Personal Finance Educator India
Priyanka Personal Finance

Smart Money · Simple Words · India

Back to Glossary
Tax

What is HRA (House Rent Allowance)? — Meaning, Definition & Example

Definition

HRA is a salary component paid by employers to employees for accommodation expenses. It is partially or fully exempt from income tax under Section 10(13A). The exempt amount is the least of: actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic salary (metro/non-metro).

💡 Real Example

If basic salary is ₹40,000, HRA is ₹20,000, and rent paid is ₹15,000 (non-metro), the exempt HRA is ₹11,000/month, saving approximately ₹39,600 in tax annually at 30% slab.

🇮🇳 HRA (House Rent Allowance) in Hindi / हिंदी में

HRA (हाउस रेंट अलाउंस) — HRA नियोक्ता द्वारा कर्मचारियों को आवास खर्च के लिए दिया जाने वाला वेतन घटक है। यह धारा 10(13A) के तहत आंशिक या पूर्ण रूप से आयकर से छूट प्राप्त है।

HRA (House Rent Allowance) (Hinglish) — HRA employer dwara employee ko accommodation expenses ke liye diya jaane wala salary component hai. Section 10(13A) ke under partially ya fully tax-free hota hai.

❓ Frequently Asked Questions

What is HRA (House Rent Allowance) in simple words?
HRA is a salary component paid by employers to employees for accommodation expenses. It is partially or fully exempt from income tax under Section 10(13A). The exempt amount is the least of: actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic salary (metro/non-metro).
Can you give an example of HRA (House Rent Allowance)?
If basic salary is ₹40,000, HRA is ₹20,000, and rent paid is ₹15,000 (non-metro), the exempt HRA is ₹11,000/month, saving approximately ₹39,600 in tax annually at 30% slab.
What is HRA (House Rent Allowance) meaning in Hindi?
In Hindi, HRA (House Rent Allowance) is called HRA (हाउस रेंट अलाउंस). HRA नियोक्ता द्वारा कर्मचारियों को आवास खर्च के लिए दिया जाने वाला वेतन घटक है। यह धारा 10(13A) के तहत आंशिक या पूर्ण रूप से आयकर से छूट प्राप्त है।