2 Lakhs HRA on 10 Lakhs Package

This discussion explores the possibility of claiming up to £2 Lakhs in House Rent Allowance (HRA) exemption on a £10 Lakhs per annum salary package under the old tax regime. While £2 Lakhs is not a fixed figure, the exemption amount is determined by a calculation involving your monthly HRA, 50% of your basic salary, and the rent you pay minus 10% of your basic salary. The lowest of these figures is the amount eligible for exemption.