The HRA exemption u/s 10(13A) is governed by Rule 2A of the 1962 Rules, prescribing the threefold formula — least of (a) HRA actually received, (b) rent paid less 10% of basic salary, (c) 50%/40% of basic salary (metro/non-metro). On the…
10(13A)
ITA 1961 · Section 10(13A)
HRA
ITA 1961Up to AY 2025-26
Section 10(13A) — HRA
The HRA exemption u/s 10(13A) is governed by Rule 2A of the 1962 Rules, prescribing the threefold formula — least of (a) HRA actually received, (b) rent paid less 10% of basic salary, (c) 50%/40% of basic salary (metro/non-metro).
On the perennial 'rent paid to parent' question, the leading authorities are Bajrang Prasad Ramdharani v. ACIT, (2013) 60 SOT 66 (Ahmedabad ITAT), and Meena Vaswani v. ACIT, ITA No. 211/Mum/2014 (Mumbai ITAT) — there is no statutory bar on payment of rent to a parent for HRA u/s 10(13A); requires genuine occupation and bona fide rent payment evidenced by bank-trail.