How Do I Apply For Tax exemption?

Can I apply for exemption of house rent during income tax payment?

• I am getting HRA-Rs.4838/-pm ( approx 30%), but i spent Rs.8500 pm. for House rent.Can i apply for exemption house rent of what i am paid ie (8500X12). if not, then what amount i can apply for exemption of house rent during income tax payment or what percentage willbe exempted. I am working PSU.

• Answer:

  There r 3 steps to calculate HRA rebate i) 50% of basic Salary if u live in metropolital & 40% if u live in other than metropolitan in your case X amount ii) Actual HRA Recd in your case its 4838/- iii) Rent paid less 10% of basic salary in your case 8500- 10% of X amount u will be eligible to get deduction of whatever amount which is less in above 3 steps.