HOUSE RENT ALLOWANCE (HRA)

➢ House Rent Allowance: [Section 10 (13A)]

Lower of the following is exempt…..

  1. 50% of Salary for the Relevant Period (If rented house is in Mumbai, Delhi, Kolkata and Chennai) OR 40% of Salary for the Relevant Period (If rented house is at any other place)
  2. Actual HRA Received for the Relevant Period
  3. Rent Paid –10% of Salary for the Relevant Period

Note:

  1. Relevant Period means the period during which rental accommodation is occupied by the employee during the P.Y.
  2. Salary for this purpose includes Basic Salary, Dearness Allowance (forming part for calculating retirement benefits) and fixed % commission on turnover achieved by the employee
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