Direct tax Law 2011 (Solved)


House Rent Allowance Section 10(13A) and Rule 2A
HRA is exempt under section 10(13A) to the extent of the minimum of the following three amounts:
House situated in Delhi, Mumbai Chennai & Kolkata
House situated in any other city
Minimum of the following 3 limits
Minimum of the following 3 limits
                (i)            Allowance actually received; or
                (i)            Allowance actually received; or
                (ii)           Rent paid in excess of 10% of salary; or
                (ii)           Rent paid in excess of 10% of salary; or
                (iii)          50% of salary
                (iii)          40% of salary
Meaning of salary: Basic salary plus D.A. to the extent the terms of employment so provide plus commission if fixed percentage of turnover. Salary is to be taken on due basis.

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