Income form salary (hra)

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Querist : Anonymous (Querist)

04 August 2011 please keep details now house rent allowance parcentage?

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
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04 August 2011 (26) House rent allowance (HRA) [Section 10(13A)] – HRA is a special allowance
specifically granted to an employee by his employer towards payment of rent for residence of
the employee. HRA granted to an employee is exempt to the extent of least of the following :
Metro Cities (i.e. Delhi, Kolkata, Mumbai,
Chennai) Other Cities
1) HRA actually received. 1) HRA actually received
2) Rent paid-10% of salary for the relevant
period
2) Rent paid - 10% of salary for the
relevant period
3) 50% of salary for the relevant period 3) 40% of salary for the relevant period
Note:
1. Exemption is not available to an assessee who lives in his own house, or in a house for
which he has not incurred the expenditure of rent.
2. Salary for this purpose means basic salary, dearness allowance, if provided in terms of
employment and commission as a fixed percentage of turnover.
3. Relevant period means the period during which the said accommodation was occupied by
the assessee during the previous year.

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
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04 August 2011 Metro Cities (i.e. Delhi, Kolkata, Mumbai,
Chennai)-
1) HRA actually received.
2) Rent paid-10% of salary for the relevant period
3) 50% of salary for the relevant period

Other Cities - In condition 3 - 40% of salary for the relevant period

Which ever less is exempt

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