hra calculations

hai, i want to know if any tax benefits are available to me for my hra. i do not receive any hra allowance, but my company pays the rent of rs 3400 for the house occupied by me. but the rent of the house is rs 3800, balance amt of rs 400 being recovered from my salary. kindly clarify.

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kirankumaradv (n/a) 26 January 2008

Calculation of HRA exempt and taxable

1. If you are staying in any four Metro city 50% of your salary. Otherwise 40% of your salary.
2. HRA Actually Received by you for the period during which you occupied the house.
3. The excess of Rent paid over 10% of your salary.

LEAST OF THE ABOVE THREE IS EXEMPT & REST IS TAXABLE.