What is the taxability of House Rent allowance (HRA)?
Subject
FAQs on Salary Income
Answer
Least/minimum of the following is exempt (Not taxable/deducted from total HRA received)
(a) Actual amount of HRA received
(b) Rent paid Less 10% of salary
(c) 50% of salary if rented accomandation is situated at Kolkata, Chennai, Mumbai and Delhi
or
40 % of salary if the rented accomadation is situated at other than Kolkata, Chennai, Mumbai and Delhi.
In case of no rent is paid then exemption will be zero.
Click here to calculate taxability of House Rent Allowance