What is House Rent Allowance?

House Rent Allowance [Sec. 10(13A)]
Amount Exempt : The least of the following amounts is exempt from tax–
a) Excess of rent paid over 10% of the salary.(i.e. Rent paid – 10% of salary)
b) 50% of the salary if house is situated at Mumbai, Calcutta, Delhi or Chennai
(Madras), or 40% of the salary in any other case ;
c) House Rent Allowance received by the employee for the concerned period during
which rental house is occupied by him ;
Meaning of Salary : Salary means Basic Pay + D.A. (if provided in terms of
employment) + commission as a % of turnover.
Note : Exemption is not available to an assessee who lives in his own house, or in a
house for which he does not pay any rent.