House Rent
Allowance Section 10(13A) and Rule 2A
HRA is exempt
under section 10(13A) to the extent of the minimum of the following three
amounts:
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House situated in Delhi, Mumbai Chennai
& Kolkata
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House situated in any other city
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Minimum of the following 3 limits
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Minimum of the following 3 limits
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(i) Allowance
actually received; or
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(i) Allowance
actually received; or
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(ii) Rent paid in
excess of 10% of salary; or
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(ii) Rent paid in
excess of 10% of salary; or
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(iii) 50% of salary
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(iii) 40% of salary
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Meaning of
salary: Basic salary plus D.A. to the extent the terms of employment so
provide plus commission if fixed percentage of turnover. Salary is to be
taken on due basis.
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