Computation of House Rent Allowance (HRA) - [Section 10(13A) Read with Rule 2A]

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.... the HRA paid to employees. 2. An employee can claim exemption on his HRA. In order to claim the deduction, the employee must actually pay rent for the house which he occupies and the rented premises must not be owned by him. 3. The quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the followin....

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....y expenditure on payment of rent, then no exemption of HRA is available. NOTE:- * It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who....