Calculation of exemption of HRA for Income Tax calculation

Calculation of Exemption of HRA.from Salary head in Income tax return
Points to be noted while calculating exemption of HRA from salary head in income tax return-
House Rent Allowance is the amount paid by employer to employee as a part of his salary. The house rent allowance is regulated by the provisions of Section 10(13A) of the IT Act.
House rent allowance benefits are only available to salaried individuals. Self-employed individuals cannot claim for exemption of House Rent paid by them to the house owner in their income tax return . This exemption is only available if the employee is living in rented a accommodation. In case the employee lives in his own house and does not pay any rent, he cannot claim HRA exemption. House Rent allowance exemption cannot exceed 50% of employee’s basic salary.
The employee can take advantage of tax benefits of HRA along with a home loan.
If the  employee is staying with his parents, he can pay rent to his parents and collect a receipt for HRA claim. However, the rules don’t allow the employee  pay rent to his wife.
The landlord’s PAN card is mandatory if the rent is paid exceeding Rs.1,00,000 per year. The landlord can provide a self-declaration in case if he doesn’t have a PAN card.
The landlord is a Non-Resident Indian,  it is must to deduct 30% tax from the rent amount.
HRA exemption is actually decided based on the salary. The factors that affect it which includes things like the city in which the employee resides. If the  employee’s residence is a metro city then he is entitled to an HRA equal to 50% of the salary. For all others cities the entitlement is 40% of the salary.
For the purpose of calculating the HRA exemption, the salary is defined as the sum of the basic salary and dearness allowance (Basic pay+ DA). If the employee is not receiving a dearness allowance then the HRA exemption will be 50% of the salary for metro city and 40% of the basic salary for other cities.
Calculation of exemption of House Rent Allowance will be the lowest of the following of three:
The amount received as the HRA from the employer.
Actual rent paid less 10% of the basic salary. [(Actual Rent paid)-10% of (Salary+DA)]
50% of the basic salary if the employee is staying in a metro city and 40% of the basic pay if the employee is staying in a non-metro city. (Here basic pay means Basic pay + DA)
The least of the above mentioned amount will be considered for tax deduction from House Rent Allowance.
Imagine an employee is Receiving a monthly salary of Rs 57800/-, Dearness amount Rs 4046/- and house rent allowance Rs 4624/-. Then his monthly salary will be Rs 61846/- for the purpose of HRA exemption calculation. Imagine he is giving 10000/- per month as house rent and he lives in Sanchore. Then he will  receive  lowest of the following of the three-
1- Amount of HRA Received from Employer.   4624 x 12=55488/-
2-Actual Rent paid less 10% of Basic Salary   (10000×12)-(61846×12)/100*10=45785
3- 40% of of Basic Salary because he is staying in a non-metro city. (61846*12)/100*40=296861
He will get exemption of lowest of the above three Rs 45785/-. His taxable house rent allowance will be-(4624*12)-45785=9703/-