calculate_hra_exemption
Calculate House Rent Allowance exemption under Section 10(13A) by taking the minimum of HRA received, rent paid minus 10% of salary, and 50%/40% of salary based on city type, for accurate tax filing.
Instructions
Calculate House Rent Allowance (HRA) exemption under Section 10(13A).
Use when computing tax-exempt HRA component for salary structuring or income tax filing. Compares three conditions and takes minimum.
Args: basic_salary: Monthly basic salary. hra_received: Annual HRA received from employer. rent_paid: Annual rent paid. city_type: 'metro' (50% of salary) or 'non_metro' (40% of salary). is_government_employee: Use simplified formula for government employees.
Returns: Standard envelope with exemption amount, taxable HRA, and breakdown.
Notes: The actual exemption is the minimum of: 1. HRA received 2. Rent paid minus 10% of salary 3. 50% of salary (metro) or 40% (non_metro)
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| city_type | No | 'metro' (Delhi/Mumbai/Chennai/Kolkata) or 'non_metro' | non_metro |
| rent_paid | Yes | Annual rent paid in rupees | |
| basic_salary | Yes | Monthly basic salary in rupees | |
| hra_received | Yes | Annual HRA received from employer in rupees | |
| is_government_employee | No | True for government employees using simplified formula |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
No arguments | |||