House Rent Allowance Calculator
House rent allowance received by an employee is taxable. However exemption is available under
section 10(13A). The exemption is based on certain set of conditions.
Exemption for House rent allowance is regulated by
rule 2A. The least of the following is exemption from tax:
a. an amount equal to 50 per cent of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40 per cent of salary where the residential house is situated at any other place;
b. house rent allowance received by the employee in respect of the period during which the rental accommodation is occupied by the employee during the previous year; or
c. the excess of rent paid over 10 per cent of salary.
The taxable HRA is a part of income from salaries. While filing Income-tax return, the same should be shown under the income from salary.