House Rent Allowance

This query is : Resolved

Sachin Jain (Querist)
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03 August 2007 What are the conditions that are considered while calculating the exemption u/s 10 for the house Rent allowance

CA Mani

CA Mani (Expert)
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03 August 2007 Refer Sec.10(13A) of IT Act, 1961

Monark

Monark (Expert)
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04 August 2007 FOr exemption under Sec. 10(13A) and refering to Rule 2A the least of the following is exempted:
Actually HRA recieed,
Rent paid - 10% of salary
On basis of the city resided 50% or 405 of the salary.

50% in Mumbia, Calautta, Delhi, Madras
40% in other cities

Salary for the purpose shall be Basic + DA + Commision (as a % of sales).