The cities include Bengaluru, Hyderabad, Pune, Ahmedabad, Jaipur, Noida, Gurgaon. These cities can be included in metro cities and additional HRA exemption benefits can be given to those people residing in these cities,” they added.
Why Bangalore is not a metro city in HRA?
As the government is collecting higher taxes from the individuals in Bangalore (40% HRA exemption) than those in Chennai and Kolkata (50% HRA exemption), it will result in a considerable amount of revenues (in the form of income tax) forgone to the government if Bangalore or Hyderabad is extended the HRA exemption of
Is Bangalore metro or non-metro for HRA?
However, as per “The Constitution (seventy-fourth Amendment) Act, 1992”, it states 7 cities (NCR, Mumbai, Kolkata, Bangalore, Pune, Hyderabad and Chennai) to be considered as metro cities in India.
Is Bangalore a metropolitan city?
As some of the prominent tier 2 cities have morphed into metros since 2014, taking the total number of metros to eight—Bengaluru, Hyderabad, Ahmedabad and Pune are the new additions.
How is HRA calculated in Bangalore?
HRA received from your employer. Actual rent paid minus 10% of salary. 50% of basic salary for those living in metro cities. 40% of basic salary for those living in non-metro cities.
What is metro and non metro in HRA?
The actual rent that is paid should be less than 10% of the basic salary. In case you’re staying in a metro, 50% of the basic salary and 40% if you live in a a non-metro city. The actual amount received as the HRA from the employer.
Which are metro cities for HRA exemption?
The metropolitan cities of India include Delhi, Mumbai, Calcutta and Chennai. In case the employee lives in any other city then 40% of the salary can be HRA exempted. The actual rent that is paid by the employee for the residence each month, minus 10 % of his/her salary.
What are non metro cities?
The US Office of Management and Budget defines metropolitan (metro) regions as a set of counties around a city with a population of 50,000 or more. Other counties are considered to be in a non-metropolitan (non-metro) region).
How is non metro HRA calculated?
How is Exemption on HRA calculated ?
- Actual HRA received from employer.
- For those living in metro cities: 50% of (Basic salary + Dearness allowance) For those living in non-metro cities: 40% of (Basic salary + Dearness allowance)
- Actual rent paid minus 10% of (Basic salary + Dearness allowance)
What is meant by metro city?
(4) The term “metropolitan city” means (A) a city within a metropolitan area which is the central city of such area, as defined and used by the Office of Management and Budget, or (B) any other city, within a metropolitan area, which has a population of fifty thousand or more.
What is non metro city India?
The definition of metro is based on the total population living in the city (more than 4 million as per Indian census). For the purpose of this article, we considered Delhi, Mumbai, Kolkata and Chennai as metro cities and all others as non-metro cities.
Is Pune metro city for HRA?
HRA exemption calculation is different for Metro and Non Metro cities. Currently only Delhi, Mumbai, Chennai and Kolkata are considered Metro cities. Other major cities such as Pune, Bangalore, Hyderabad which have considerable amount of employed people who stay in rented homes are not in Metro city list.
Can you claim HRA for rent paid in another city?
Yes, you can claim HRA for both house rent and home loan interest if you are living in another city.
Can I claim HRA if I live in my own house?
Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both, the principal and interest repaid on the home loan.
How do I maximize HRA exemption?
The maximum exemption that you can avail of under HRA is the minimum of the following,
- Actual HRA received,
- 50% of basic salary plus dearness allowance in case of metro residents (40% in case of non-metro residents), or,
- Actual rent paid minus 10% of basic salary and dearness allowance.
What is HRA for metro city?
If the place of residence is a metro city, then employee can avail an exemption upto 50% of the salary. For all others cities, the entitlement is upto 40% of the salary. For the purpose of calculating the HRA exemption, the salary is defined as the sum of the basic salary, dearness allowances and other commissions.
How much HRA can I claim non metro?
40%
40% of the basic salary is calculated as HRA for people living in non-metro cities while the same is 50% for employees in metro cities like Mumbai or Chennai. In order to avail HRA benefit it is not necessary that you pay rent only to a landlord.
How many metropolitan cities are there in Karnataka?
The following is a list of the most populous cities in Karnataka state of India as per the 2011 census. There are 26 cities in Karnataka which have a population over 100,000.
List of cities.
| City | Mangalore |
|---|---|
| District | Dakshina Kannada |
| Population 2011 | 499,487 |
| Population 2001 | 411,327 |
| Population 1991 | 273,304 |
Is Bangalore a cosmopolitan city?
“Bangalore is a very cosmopolitan city, It is truly an international city. From the artisan and artiste in a far-off Indian state to the expat, the city exudes a lot of openness to different kinds of people.”
How many metropolitan cities are there in India?
At present there are around 23 metropolitan areas viz. Ahmedabad, Bangalore, Chennai, Coimbatore, Gorakhpur, Hyderabad, Jaipur, Jodhpur, Kanpur, Kochi, Kolkata, Kozhikode, Madurai, Mumbai, Nagpur, National Capital Region, Patna, Pune, Raipur, Salem, Surat, Thiruvananthapuram and Visakhapatnam.
How much HRA can I claim without receipts?
Rs 3,000 per month
Yes, if your HRA is up to Rs 3,000 per month, you can claim HRA without rent receipts. But, you can not claim HRA without rent receipts when your HRA exceeds Rs 3,000.
