How to Save Income Tax.. 1. Standard Deduction 2. Section 80C 3. Section 80D 4. HRA 5. Section 80CCD(1B) 6. Section 24. Zero Income Tax on 11 Lakh
HRA exemption Calculation
How HRA exemption is calculated. You basically need to do 3 calculations to reach your HRA exemption amount:
1. Calculate Total HRA received in FY
2. Total rent paid in FY minus 10% of Basic Salary + DA in FY
3. 50% of Basic Salary + DA (metro city), else 40% in case staying in non metro city.
Minimum of above numbers will be considered as HRA exemption amount in the financial year to save income tax by reducing the taxable income.