HRA Exemption under Section 10(13A)

The HRA exemption is the income-tax exemption a salaried employee who pays rent can claim on part of the house rent allowance received, equal to the least of three amounts. For income earned from 1 April 2026 it is granted by Section 11 read with Schedule III (Table: Sl. No. 11) of the Income-tax Act 2025, quantified by Rule 279 of the Income-tax Rules 2026. For the financial year 2025-26 return, filed during 2026, it is granted by Section 10(13A) of the Income-tax Act 1961 read with Rule 2A of the Income-tax Rules 1962. It is available only under the old tax regime, and it is worth nothing to an employee who pays no rent, however large the allowance.

Two of its terms carry meanings the pay rules do not share. Salary here is basic pay plus dearness allowance and nothing else, and the metro list that fixes the third limb is a tax list, not the 7th CPC city classification, although from 1 April 2026 the two hold the same eight cities for the first time. The exemption is also the most heavily documented item in a salary return: the landlord’s Permanent Account Number, the relationship with the landlord, and in many cases a 2% tax deduction by the tenant on the rent itself.

This article sets out the statutory home of the exemption under both Acts, the least-of-three formula, the definition of salary, the relevant period over which the formula runs, the metro rule and why it rarely binds on a government employee, worked examples, the documentation now required on Form No. 124, the tenant’s own obligation under Section 194-IB, the position on rent paid to a spouse or parent, the Section 134 deduction for employees who receive no allowance, and the errors that get claims disallowed. For the allowance itself, its 30%, 20% and 10% rates and the city classification, see the house rent allowance article. To compute the figure, the HRA exemption calculator applies the formula to a given set of inputs.

Where the exemption sits in each Act

The exemption changed statutory address on 1 April 2026 without changing in substance. Under the Income-tax Act 1961 it was Section 10(13A), an item in the long list of incomes not included in total income, with the conditions on ownership and actual payment sitting in an Explanation added for the removal of doubts. Under the Income-tax Act 2025 the structure is cleaner.

Section 11(1) of the Income-tax Act 2025 provides that in computing total income for a tax year, income enumerated in Schedules II, III, IV, V and VI is not included, subject to fulfilment of the conditions specified in those Schedules. Section 11(2) charges the income where the conditions are not satisfied. There is no house rent allowance sub-section, so the citation form is Section 11 read with Schedule III (Table: Sl. No. 11), never a Section 11 sub-clause.

Serial number 11 of the Schedule III table covers “any special allowance from employer” for “any assessee”, on four conditions. The allowance must be specifically granted to meet expenditure actually incurred on payment of rent for residential accommodation occupied by the assessee; the allowance is exempt only to the extent prescribed, having regard to the area or place in which the accommodation is situated; the accommodation occupied must not be owned by the assessee; and the assessee must have actually incurred expenditure on payment of rent for it.

Three of those four conditions are in the Schedule itself. Only the second, the quantum, is delegated to the Rules, which is where Rule 279 comes in. That is a real improvement on the 1961 Act, where the ownership bar and the actual-payment requirement lived in an Explanation rather than in the charging text. Two other provisions confirm the mapping: Section 18(2)(d) excludes Schedule III (Table: Sl. No. 11) from “profits in lieu of salary”, exactly as Section 17(3)(ii) of the 1961 Act excluded Section 10(13A), and Section 202(2)(a)(i) names serial number 11 among the exemptions the new regime disallows.

The least-of-three computation

The exempt house rent allowance is the least of three amounts, computed over the relevant period. Rule 279(1) of the Income-tax Rules 2026 states the limbs, and Rule 2A of the Income-tax Rules 1962 states the same three for the financial year 2025-26 return.

The smallest of the three is exempt and the balance of the allowance is taxable salary. Note the wording of the second limb: both rules speak of “expenditure actually incurred by the assessee in payment of rent”, not of rent payable or rent contracted for. A rent agreement without payment produces no exemption.

Two features of that second limb drive most results. It is capped by the expenditure actually incurred, so a low rent produces a low exemption, and it turns negative when the rent is below one-tenth of salary, in which case the exemption is nil. This is why the exemption tracks rent rather than the allowance: an employee who pays little rent gets little exemption no matter how large the allowance drawn, and an employee who pays none gets nothing at all. The HRA exemption calculator evaluates all three limbs from a salary, rent and city input.

What counts as salary

Salary in this formula means basic pay plus dearness allowance, and excludes everything else on the salary slip. Rule 279(2)(b) of the Income-tax Rules 2026 puts it in one line: salary “includes dearness allowance, if provided for under the terms of employment, but excludes all other allowances and perquisites”. Rule 2A of the Income-tax Rules 1962 reached the identical definition by adopting clause (h) of rule 2 of Part A of the Fourth Schedule to the Income-tax Act 1961, which is worded the same way.

The statutory test is whether the terms of employment provide for the dearness allowance, not whether it counts towards retirement benefits. That distinction is often stated the other way round and it matters to a private employee whose dearness allowance may sit outside the contract. For a central government employee the question does not arise: dearness allowance is provided for under the terms of employment, so salary for this purpose is basic pay plus dearness allowance. At the rate of 60% in force from 1 January 2026 under Department of Expenditure Office Memorandum No. 1/1(i)/2026-E.II(B) dated 22 April 2026, that base is materially wider than basic pay alone.

Commission at a fixed percentage of turnover also enters the definition, but by judicial construction rather than by the text. The Supreme Court read it into clause (h) of rule 2 of Part A of the Fourth Schedule in Gestetner Duplicators (P) Ltd v CIT, holding that such commission forms part of salary. Rule 279(2)(b) does not mention commission at all. The point is live for a commission-earning private employee and irrelevant to a government employee, whose pay carries no turnover-linked component.

Transport allowance, children education allowance, the house rent allowance itself, overtime, honoraria and bonuses are all outside the definition. Including any of them inflates the second and third limbs and produces an exemption the assessing officer will reduce.

The relevant period, not the year and not the month

The formula runs over the relevant period, which Rule 279(2)(a) of the Income-tax Rules 2026 defines as “the period during which the said accommodation was occupied by the assessee during the tax year”. Explanation (ii) to Rule 2A of the Income-tax Rules 1962 uses the same sentence with “previous year” in place of “tax year”. This is the unit of computation, and it is neither the financial year nor the calendar month.

An employee who took rented accommodation on 1 September and occupied it to 31 March has a relevant period of seven months. The allowance received, the expenditure incurred on rent and the salary due are all taken for those seven months. Using annual figures overstates the second limb, because a full year of salary raises the one-tenth deduction against seven months of rent.

Where the rent, the salary or the city changes within the year, the formula is worked separately for each stretch and the results are added. That is the practical consequence of the definition rather than a separate rule: a period on one rent in one city is a different relevant period from a period on another. A transfer from Bengaluru to Guwahati mid-year, an increment, or a dearness allowance revision on 1 January each split the year, and the last of those hits every central government employee twice a year.

Metro versus non-metro: the tax list is not the pay list

Eight cities take the 50% limb for income earned in tax year 2026-27: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Any other place takes 40%. The table at Rule 279(1)(c) of the Income-tax Rules 2026 sets those two rates, and the rule was notified on 20 March 2026 by Central Board of Direct Taxes Notification No. 22/2026 [F. No. 370142/41/2025-TPL], G.S.R. 198(E), in force from 1 April 2026.

The test is where the home is, not where the office is. Rule 279(1)(c) opens with “in case of an assessee employed in the location mentioned in column B”, but column B of its own table is headed “Location of residential accommodation”, and Schedule III (Table: Sl. No. 11) condition (b) speaks of “the area or place in which such accommodation is situated”. Rule 2A(c) of the 1962 Rules put it beyond argument with the word “situate”. An employee whose office is in Delhi and whose rented home is in a town outside the listed area takes the 40% limb.

That notification closed a gap that had run for decades. Until 31 March 2026 the 50% limb reached four cities only, and Rule 2A still names them by their pre-1996 names: “Bombay, Calcutta, Delhi or Madras”. The city classification for HRA meanwhile paid the allowance at the X class rate of 30% of basic pay in eight cities. An employee posted in Bengaluru drew the X class rate and computed the exemption on the 40% limb, because Bengaluru was X class for pay and not a metro for tax. Confusing the two lists was the classic error, and from tax year 2026-27 it no longer arises, because both lists hold the same eight cities.

The financial year 2025-26 return, filed during 2026, still runs on the four-city list. Rule 279 governs income earned from 1 April 2026 onward, so a return covering the twelve months to 31 March 2026 is computed under Rule 2A, with Bengaluru, Hyderabad, Pune and Ahmedabad on the 40% limb.

For a central government employee the change alters almost nothing, because the third limb rarely decides the exemption at all. The house rent allowance is at most 30% of basic pay under Department of Expenditure Office Memorandum No. 2/5/2017-E.II(B) dated 7 July 2017, while the 40% limb is 40% of basic pay plus dearness allowance, which at a dearness allowance of 60% works out near 64% of basic pay, and the 50% limb near 80%. Both dwarf the allowance, so the third limb is never the smallest of the three. The exemption is the lesser of the allowance received and the rent-over-one-tenth limb, whatever the city. The place-based cap binds mainly on private employees whose allowance can approach half of salary.

Worked examples

Take a Level 7 employee with basic pay of Rs. 44,900 and dearness allowance at 60%, so salary for the exemption is Rs. 71,840 a month, drawing the allowance at the X class rate of 30%, which is Rs. 13,470 a month, and incurring rent of Rs. 18,000 a month for the whole year.

Posted in Delhi, a listed city, the three limbs are the actual allowance of Rs. 13,470; the rent over one-tenth of salary, Rs. 18,000 minus Rs. 7,184, which is Rs. 10,816; and 50% of salary, Rs. 35,920. The least is Rs. 10,816, so Rs. 10,816 a month is exempt and Rs. 2,654 of the allowance is taxable salary.

Posted in Bengaluru for income earned in tax year 2026-27, the same employee draws the same Rs. 13,470 and incurs the same Rs. 18,000 rent. The limbs are Rs. 13,470; Rs. 10,816; and 50% of salary, Rs. 35,920, because Bengaluru now sits in the Rule 279 table. On the financial year 2025-26 return the third limb would instead be 40% of salary, Rs. 28,736, under Rule 2A. The least is Rs. 10,816 either way. The exemption is identical, because the rent-linked limb binds in both and the place-based cap is irrelevant. This is the general position for a government employee, and it is why the eight-city change is a headline that rarely reaches the figure.

A third case shows when nothing is exempt. If the same employee incurs rent of only Rs. 6,000 a month, the second limb is Rs. 6,000 minus Rs. 7,184, which is negative, so the exemption is nil and the whole Rs. 13,470 allowance is taxable. Rent below one-tenth of salary wipes out the exemption regardless of the allowance drawn.

A fourth case shows the relevant period at work. Suppose the employee occupied the Delhi accommodation only from 1 October to 31 March. The relevant period is six months, so the computation uses six months of allowance, six months of rent and six months of salary. The monthly result is unchanged at Rs. 10,816, but the annual exemption is Rs. 64,896 rather than Rs. 1,29,792. The allowance drawn for the six months before the tenancy is fully taxable, because no accommodation was occupied and no rent was incurred.

Documentation: Form No. 124 replaces Form 12BB

An employee who wants the exemption reflected in monthly tax deduction furnishes evidence to the employer on a prescribed form. From 1 April 2026 that form is Form No. 124, prescribed by Rule 205 of the Income-tax Rules 2026 under Section 392(5)(b) of the Income-tax Act 2025. It replaces Form 12BB, which Rule 26C of the Income-tax Rules 1962 prescribed for earlier years.

The house rent allowance row asks for the name, address and Permanent Account Number of the landlord or landlords where the aggregate rent paid during the tax year exceeds Rs. 1,00,000. The Rs. 1,00,000 threshold is unchanged from Rule 26C. What is new in Rule 205 is the closing words of that row, “and relationship with the landlord, if any”, which Form 12BB never asked for. An employee renting from a parent, a spouse or a sibling now discloses that relationship to the employer at the declaration stage rather than at scrutiny.

Rent receipts are the ordinary proof of expenditure actually incurred, and the payment trail matters more than the receipt. A bank transfer to the landlord’s account establishes expenditure in a way a signed receipt for cash does not. Retain the lease or rent agreement, the receipts and the bank records: furnishing evidence to the employer governs the deduction of tax from salary, and it does not stop the assessing officer calling for proof of the exemption if the return is examined.

The tenant’s own obligation: TDS on rent under Section 194-IB

An employee paying rent above Rs. 50,000 a month is a tax deductor, and this catches more government officers than is generally realised. Section 194-IB of the Income-tax Act 1961 requires an individual or Hindu undivided family paying rent to a resident, exceeding Rs. 50,000 for a month or part of a month, to deduct tax at 2%. The rate was 5% until the Finance (No. 2) Act 2024, Act No. 15 of 2024, substituted 2% with effect from 1 October 2024.

Section 393(1), Table Sl. No. 2(i) of the Income-tax Act 2025 carries the provision forward unchanged from 1 April 2026: rent paid by a person other than a specified person, rate 2%, threshold Rs. 50,000 for a month or part of a month.

The mechanics are deliberately light. No tax deduction account number is needed, under Section 194-IB(3). The deduction is made once, not monthly: at credit or payment for the last month of the tax year, or the last month of the tenancy where the property is vacated during the year. Where the landlord has no Permanent Account Number and Section 206AA or Section 206AB applies, the higher rate is capped at one month’s rent by Section 194-IB(4), so the deduction never exceeds a single month’s payment. The tax is deposited with a challan-cum-statement: Form 26QC under the 1961 Act, and Form No. 141 under Rule 218(3) of the Income-tax Rules 2026, due within thirty days from the end of the month in which the deduction was made.

A Level 12 officer in an X class city paying Rs. 60,000 a month is inside this provision. Failing to deduct does not affect the exemption, which turns on expenditure actually incurred, but it carries interest and a late-fee exposure of its own, and the rent figure is now visible to the department from both directions.

Rent paid to a spouse or a parent

Rent paid to a relative qualifies where the payment is genuine and can be proved. No provision bars it. Schedule III (Table: Sl. No. 11) imposes two factual tests, occupation of accommodation not owned by the assessee and expenditure actually incurred on rent, and Rule 279 is concerned only with quantum. The identity of the landlord is not a statutory condition.

The Income Tax Appellate Tribunal has allowed the claim on those terms. In Bajrang Prasad Ramdharani v ACIT, I.T.A. No. 715/Ahd/2013, pronounced by the Ahmedabad Bench on 12 July 2013 for assessment year 2009-10, the assessing officer had treated rent paid by a husband to his wife as a colourable device because the couple lived together. The Tribunal held that the assessee had fulfilled the twin requirements of occupation of the house and the payment of rent, and was entitled to the exemption. In Abhay Kumar Mittal v DCIT, ITA No. 3385/Del/2019, pronounced by the Delhi Bench on 8 February 2022 for assessment year 2013-14, the Tribunal noted that the wife had declared the rent under income from house property in returns that had been accepted, and held that the contention that a husband cannot pay rent to his wife was devoid of legal implication.

The claim fails on evidence, not on relationship. In Meena Vaswani v ACIT, I.T.A. Nos. 1983, 1984 and 1985/Mum/2015, pronounced by the Mumbai Bench on 30 March 2017 for assessment years 2009-10 to 2011-12, rent claimed as paid to the assessee’s mother was disallowed because the payments were not shown to be genuine. The burden of proving the expenditure lies on the employee.

What follows practically is a documentation standard rather than a rule of law. Pay by bank transfer, hold a written lease, and expect the recipient to return the rent as income from house property, which weighed with the Tribunal in Abhay Kumar Mittal. The recipient’s declaration is an evidentiary factor and not a statutory condition, and Form No. 124 now surfaces the relationship to the employer in the first place.

When no allowance is received: Section 134 and Section 80GG

An employee who pays rent but receives no house rent allowance cannot use the exemption and claims a deduction instead. Section 134 of the Income-tax Act 2025 allows the rent paid in excess of 10% of total income, subject to a maximum of the lower of Rs. 5,000 a month and 25% of total income for the tax year. The declaration is filed on Form No. 31 under Rule 65 of the Income-tax Rules 2026. Section 80GG of the Income-tax Act 1961 is the predecessor, on Form 10BA under Rule 11B of the Income-tax Rules 1962, with the same limits.

Section 134(4)(a) bars the deduction where residential accommodation at the place of residence or employment is owned by the assessee, the spouse, a minor child or a Hindu undivided family of which the assessee is a member, and also where the assessee owns accommodation elsewhere that is in his own occupation and valued as self-occupied. Section 134(4)(b) bars it to anyone with income falling in Schedule III (Table: Sl. No. 11), so the deduction and the exemption cannot both be claimed.

The Rs. 5,000 monthly ceiling is what makes this the weaker relief. It has stood since the Finance Act 2016, section 38, raised it from Rs. 2,000 with effect from 1 April 2017, and it has not been revised since. Against it, an employee drawing house rent allowance in an X class city can exempt several times that. Section 134 sits in Chapter VIII of the Income-tax Act 2025, which Section 202(2)(a)(xii) disallows under the new regime, so it too is old-regime only.

Government accommodation and the own-house case

Two situations remove the exemption for a government employee, and they work differently. An employee allotted General Pool Residential Accommodation does not draw the allowance at all. Paragraph 4.1 of Department of Expenditure Office Memorandum No. 2/4/2022-E.II(B) dated 30 December 2022, the consolidated house rent allowance compendium, bars the allowance to occupants of government accommodation, with a licence fee recovered from salary instead. The allowance stops from the date the accommodation is taken over in habitable condition, or from the date of allotment where the employee declines it. With no allowance there is nothing to exempt, and the take-home salary shows a recovery rather than an allowance.

An employee who draws the allowance while living in a house he owns is in the opposite position: the allowance is received and fully taxable. Two conditions fail at once. Schedule III (Table: Sl. No. 11) condition (c) requires the accommodation occupied not to be owned by the assessee, and condition (d) requires expenditure actually incurred on rent. The second limb of Rule 279(1) collapses to a negative figure without rent in any event. The correct treatment is to tax the whole allowance, and an employee in government accommodation should not attempt to claim an exemption that does not arise.

Old regime only, and the trade-off

The exemption exists only in the old regime, so claiming it is inseparable from the regime decision. Section 202(2)(a)(i) of the Income-tax Act 2025 computes total income under the new regime without any exemption or deduction under Schedule III (Table: Sl. No. 5 or 6 or 7 or 8 or 11 or 17), and serial number 11 is the house rent allowance entry. Section 115BAC(2)(i) of the Income-tax Act 1961 did the same for earlier years. Section 202(2)(a)(xii) removes Chapter VIII, which carries Section 134, so an employee loses the rent deduction as well as the allowance exemption on moving to the new regime.

Whether the old regime is worthwhile is arithmetic, not principle. For an employee incurring substantial rent alongside other old-regime deductions such as the 80C investments and the standard deduction, the exemption can tip the balance; for one with little rent or few other deductions, the new regime usually wins despite the lost exemption. The election itself is made by filing Form 10-IEA to opt out of the default. The old versus new tax regime article sets out the comparison, and the income tax calculator computes both regimes side by side so the exemption can be tested against the lower rates.

How the exemption is claimed through the year

The exemption is given effect in two stages, and getting the first right avoids over-deduction of tax and a wait for a refund.

During the year the employee declares the rent and the expected exemption to the Drawing and Disbursing Officer on Form No. 124, with the rent evidence and, where the aggregate rent exceeds Rs. 1,00,000, the landlord’s Permanent Account Number and the relationship with the landlord. On that basis the office reduces the exempt amount from taxable salary and deducts a smaller TDS on salary each month, so the relief accrues through the year. The exempt figure then appears in the Form 16 the office issues after the year closes.

At filing, the employee claims the exemption in the return under the old regime, matching the Form 16, and retains the lease, the receipts, the bank record and the Permanent Account Number of the landlord in case the return is examined. An employee who did not declare it to the office can still claim the correct exemption directly in the return, which produces a refund of the excess tax deducted.

What the Income-tax Rules 2026 changed

Four form and rule numbers changed on 1 April 2026, and none of the substance did. The least-of-three formula, the salary definition and the relevant period all carried across from Rule 2A to Rule 279 in the same words. The changes worth recording are these.

The Finance Act 2026 did not touch the exemption. Clause 123 amends Schedule III only by inserting serial numbers 38A, 38B, 38C and 38D, covering armed forces disability pension, interest on motor accident claims compensation, land acquisition awards and the Andhra Pradesh land pooling scheme. Serial number 11 is untouched, so the eight-city list and the least-of-three computation are what apply for tax year 2026-27.

Errors that get the claim disallowed

A handful of mistakes account for most disallowances, and each has a specific provision behind it.

Claiming under the new regime is the most frequent. An employee who has not filed Form 10-IEA to opt out is taxed under the default regime, where Section 202(2)(a)(i) removes the exemption, so the claim cannot survive whatever the rent. Treating an X class city as a listed city on the wrong year is the second: for income earned in tax year 2026-27 Bengaluru, Hyderabad, Pune and Ahmedabad take the 50% limb, and on the financial year 2025-26 return they take 40% under Rule 2A. Including transport allowance or the house rent allowance itself in salary inflates the second and third limbs against the definition in Rule 279(2)(b).

Using annual figures where the accommodation was occupied for part of the year overstates the exemption, because Rule 279(2)(a) confines the computation to the period of occupation. Omitting the landlord’s Permanent Account Number where the aggregate rent exceeds Rs. 1,00,000 leads the office to deny the exemption in the salary computation under Rule 205. Claiming on a paper arrangement with a family member, without a payment trail, fails the actual-expenditure test in Schedule III condition (d), which is what sank the claim in Meena Vaswani. Claiming while occupying government accommodation, where no allowance is drawn under paragraph 4.1 of the Office Memorandum of 30 December 2022, has nothing to attach to. And claiming more than the rent-over-one-tenth figure ignores the limb that caps almost every government employee’s exemption.

Related Articles

• Deductions allowed in the new tax regime
• Rebate, deduction, and exemption: the difference
• House rent allowance
• City classification for HRA
• HRA exemption calculator
• HRA calculator
• Section 80GG deduction for rent paid
• Old versus new tax regime
• New tax regime
• Old tax regime
• Form 10-IEA to opt out of the new regime
• Form 12BB
• Income tax for government employees
• Income-tax Act 2025
• Standard deduction
• Section 87A rebate
• TDS on salary
• Form 16
• Form 26AS
• Income tax slabs for AY 2027-28
• NPS tax benefits
• Income tax for pensioners
• Dearness allowance
• Take-home salary of central government employees
• Central government employees in India
• Pay matrix
• Transport allowance
• Children education allowance
• Income tax calculator
• 7th CPC salary calculator

External references

• Income Tax Department, e-filing portal (incometax.gov.in)
• Income Tax Department, Acts, Rules and Schedules (incometaxindia.gov.in)
• Central Board of Direct Taxes notifications and circulars
• Ministry of Finance, Department of Expenditure (doe.gov.in)
• India Code, bare Acts and Rules
• The Gazette of India (egazette.gov.in)

References

1. Income-tax Act, 2025, Section 11, and Schedule III (Table: Sl. No. 11), on the exclusion of a special allowance granted to meet rent actually incurred on residential accommodation occupied by and not owned by the assessee.
2. Income-tax Rules, 2026, Rule 279, prescribing the least-of-three limits for Schedule III (Table: Sl. No. 11), and defining relevant period and salary at Rule 279(2).
3. Central Board of Direct Taxes, Notification No. 22/2026 [F. No. 370142/41/2025-TPL], G.S.R. 198(E), dated 20 March 2026, notifying the Income-tax Rules, 2026 with effect from 1 April 2026.
4. Income-tax Act, 1961, Section 10(13A), and Income-tax Rules, 1962, Rule 2A, governing the exemption for income up to 31 March 2026, and clause (h) of rule 2 of Part A of the Fourth Schedule, defining salary.
5. Income-tax Rules, 2026, Rule 205, prescribing Form No. 124 for evidence furnished to the employer under Section 392(5)(b) of the Income-tax Act, 2025, and Income-tax Rules, 1962, Rule 26C, prescribing Form 12BB for earlier years.
6. Income-tax Act, 1961, Section 194-IB, on deduction of tax at 2% on rent exceeding Rs. 50,000 a month, the rate substituted by the Finance (No. 2) Act, 2024 (Act No. 15 of 2024) with effect from 1 October 2024; Income-tax Act, 2025, Section 393(1), Table Sl. No. 2(i), and Income-tax Rules, 2026, Rule 218(3), prescribing Form No. 141.
7. Income-tax Act, 2025, Section 134, and Income-tax Rules, 2026, Rule 65, prescribing Form No. 31; Income-tax Act, 1961, Section 80GG, and Income-tax Rules, 1962, Rule 11B, prescribing Form 10BA. The Rs. 5,000 monthly ceiling was substituted for Rs. 2,000 by the Finance Act, 2016, section 38, with effect from 1 April 2017.
8. Income-tax Act, 2025, Section 202(2)(a)(i) and Section 202(2)(a)(xii), disallowing Schedule III (Table: Sl. No. 11) and Chapter VIII under the new regime; Income-tax Act, 1961, Section 115BAC(2)(i), to the same effect for earlier years.
9. Bajrang Prasad Ramdharani v ACIT, I.T.A. No. 715/Ahd/2013, ITAT Ahmedabad, pronounced 12 July 2013; Abhay Kumar Mittal v DCIT, ITA No. 3385/Del/2019, ITAT Delhi, pronounced 8 February 2022; Meena Vaswani v ACIT, I.T.A. Nos. 1983, 1984 and 1985/Mum/2015, ITAT Mumbai, pronounced 30 March 2017.
10. Ministry of Finance, Department of Expenditure, Office Memorandum No. 2/5/2017-E.II(B) dated 7 July 2017, on the house rent allowance rates of 30%, 20% and 10%, and Office Memorandum No. 2/4/2022-E.II(B) dated 30 December 2022, paragraph 4.1, barring the allowance to occupants of government accommodation.