➢ House Rent Allowance: [Section 10 (13A)]
Lower of the following is exempt…..
- 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)
- Actual HRA Received for the Relevant Period
- Rent Paid –10% of Salary for the Relevant Period
- Relevant Period means the period during which rental accommodation is occupied by the employee during the P.Y.
- Salary for this purpose includes Basic Salary, Dearness Allowance (forming part for calculating retirement benefits) and fixed % commission on turnover achieved by the employee