The House Rent Allowance to Individual Salaried employees is exempted from Income Tax in terms of (Section 10(13A) & Rule 2A) of Income Tax Act, subject to the following conditions:
| House Rent Allowance | |
|---|---|
| Exemption | Least of the following is exempt:
a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary * Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than ₹ 1,00,000 [Circular No. 08 /2013 dated 10th October, 2013]. |
| Available to | Individual - Salaried employee |