HRA EXEMPTION

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Rajesh Goyal (Querist)
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10 November 2009 Sir,
As per IT Rules, HRA is allowable upto a maximum of 50% of Salary in case of Metro Cities and 40% of Salary in case Non Metro Cities. I would like to know whether Howrah would be considered within the limits of Kolkata and Gurgaon would be considered within the limits of Delhi so on and so forth.
Is there a list of such cities NOTIFIED by the IT Dept through any circular / notifcation.
If someone could throw some light on this issue.
Rgds,

Taranjit Singh

Taranjit Singh (Expert)
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10 November 2009 The actual HRA deduction that one can avail under Section10 (13A) would be the minimum of the following:

The actual amount of HRA received.
50% of the salary for individuals residing in metros (Delhi, Mumbai, Chennai or Kolkata) and 40% otherwise.
Rent paid minus 10% of salary (basic component + dearness allowance).

So it specifically provides for exemption of 50% only in Metros.

CA.Pujah

CA.Pujah (Expert)
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10 November 2009 I agree with sh Taranjit. When cities are specifically defined, there is no other question

BALASUBRAMANYA B N

BALASUBRAMANYA B N (Expert)
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10 November 2009 Agree

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