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hra exemption

27 June 2019

i am army person and getting hra as hra arrier in teo times during the year or 251904 and I'm paying 19800 per month rent by NEFT and my basic + da is rs 1500000 per annum how much rebate can i get

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3 Replies

Anil Kotak (student) (309 Points)
Replied 30 June 2019

Depends also upon city you live in.

2 Like

Suresh Thiyagarajan (Student) (3986 Points)
Replied 30 June 2019

1. If a person is in receipt of HRA, then according to sec 10(13A) HRA will be exempted in the hands of the salaried person as follows,
i) Actual HRA received (or)
ii) Rent paid less 10% of Salary (Basic + DA) (or)
iii) 40% of (Basic + DA) or 50% (in case of Mumbai, Chennai, Delhi, Kolkata)
whichever is lower will be an exempt income and can be reduced from salary.
2. First House rent allowance received from Employer will be included as a part of income and from that HRA will be exempted and reduced as per the above computation.
Please correct me if the above solution has an alternative view.