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What is the House Rent Allowance's (HRA) taxability?

Question

What is the House Rent Allowance's (HRA) taxability?

Expert Answer
Answered 25 Nov 2022
2096 views

At least one of the following is exempt (not taxable or subtracted) from the total HRA received.

(A) Rent paid less 10% of (BP+DA)

B(i)) 40% of the (BP+DA) for Non Metro cities

B(ii) 50% of the (BP+DA) for Metro cities

C) The actual HRA received.

 

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