HOUSE RENT ALLOWANCES (HRA)

 

HOUSE RENT ALLOWANCE (HRA)

House Rent Allowance (HRA) is a common component of a salary package given by an employer to an employee to meet the cost of living in a rented accommodation. While the HRA you receive from your employer is part of your total salary, you can claim a partial or full exemption on it from your taxable income under Section 10(13A) of the Income Tax Act.

Exemption to HRA

SALARY= BASIC PAY+DA (Forming part)+ % of Commission on Turnover achieved by him

Least of the following is exempted

1.        50 %  of SALARY ( for Metropoletan Cities) 40% for other Cities

2.        HRA received from employer

3.        Rent paid -10 % of SALARY

Taxable HRA

 

 

HRA Received

XXX

Less: Exemption

 

XXX

Taxable HRA

XXX

 

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