House rent allowance (HRA)
Employers may provide their employees with house rent allowance (HRA). HRA is exempt as per s 10(13A) of the Act if the employees' HRA claim is less than the limits prescribed as per rule 2A of the Rules.
HRA exemption limit is provided under s 10(13A), being the lowest of the following:
- Ìý
•ÌýÌýÌýÌý actual HRA received
- Ìý
•ÌýÌýÌýÌý 50% of [basic salary + DA*] for those living in Mumbai, Delhi, Chennai and Kolkata (40% for non-metros), or
- Ìý
•ÌýÌýÌýÌý actual rent paid less 10% of basic salary
Quoting PAN of the owner is compulsory. The employee claiming HRA must not reside in their own home or claim
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Web page updated on 17 Mar 2025 15:41