HOUSE RENT ALLOWANCE

    

House Rent Allowances: Commonly known as HRA, exemption being bestowed through section 10(13A) briefed as:

1.

An amount equal to 50 per cent of salary, where residential house is situated at Mumbai, Kolkata, Delhi or Chennai and an amount equal to 40 per cent of salary, where residential house is situated at any other place.

2.

House rent allowance received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year.  

3.

Rent paid minus 10 per cent of salary

PLEASE NOTE:

  • Salary here means Basic+ D.A+ Commission based on fixed % of turnover achieved by an employee. 

  • MODE OF COMPUTATION OF EXEMPTION: Under section 10(13A), the amount of exemption in respect of house rent allowance received by an employee depends upon the following:

   -     Salary of the employee;

   -     House rent allowance;

   -     Rent paid; and

   -     The Place where house is taken on rent.

When these four are same throughout the year, the exemption under section 10(13A) should be calculated on “ANNUAL” basis. When, however, there is a 

  • Change in respect of any of the above factors will make the calculation to be done on “MONTHLY” Basis.

STILL FINDING IT DIFFICULT ? TRY OUR HRA CALCULATOR 

(Just Click the Link Below)

HRA Calculator