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HomePersonal Finance40% exemption in HRA: Good news for employees! You can get 40%...

40% exemption in HRA: Good news for employees! You can get 40% exemption in HRA, Check exemption details here

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In Budget 2023, the government can announce a big relief for the salaried individual. According to the information, it is being considered to increase the exemption in HRA for non-metro cities from 40 percent.

The preparation for Budget 2023 is going on in full swing. If you do a job then a big announcement is possible for you in the budget. According to information received by media reports from sources, people living in non-metro cities can get gifts in the budget. This gift is possible in the form of increasing the scope of exemption in House Rent Allowance. According to the information, the HRA exemption limit can be increased up to 50 percent even for people living in non-metro cities. Apart from this, the scope of exemption available in HRA for non-salaried individual can be increased from 60 thousand rupees every year.

50 percent HRA is available in metro cities
Currently, the exemption on house rent allowance for metro cities is up to 50 percent of basic and dearness allowance. For non-metro cities, this limit is only 40 percent of basic and DA. Metro cities include only four cities – Delhi, Mumbai, Kolkata and Chennai. Apart from this, all cities like Pune, Bangalore, Patna, Hyderabad come under non-metro category.

The issue was also raised in Parliament
This issue was also raised in the Parliament. Tejasvi Surya, MP from Bengaluru South, had demanded in the House that the exemption limit on HRA be increased for non-metro cities. In cities like Bangalore, Ahmedabad, Hyderabad, Pune, Noida, there has been an increase in rents. In such a situation, the limit of exemption available in HRA should be increased to 50 percent.

Exemption for non-salaried is more than 60 thousand possible
Apart from this, the exemption limit on HRA for non-salaried individuals can also be increased from Rs.60,000. Currently, non-salaried individuals are exempted from HRA under section 80GG. The limit of every month is 5000 rupees and in a financial year it is maximum 60 thousand rupees. It is also being considered to increase its limit.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com

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