HRA is 8% of Basic

A government employee in Karnataka is receiving House Rent Allowance (HRA) equivalent to just 8% of her basic pay. She's questioning if this is a valid amount and if she can claim a higher tax exemption. The response confirms that 8% HRA is permissible, as employers determine components beyond basic and Dearness Allowance. The exemption calculation involves comparing the actual HRA received, rent paid minus 10% of salary (Basic + DA), and 40% of salary, with the lowest amount being the eligible exemption under Section 10(13A).