Budget 2024: Will Finance Minister take a decision on HRA...?

House Rent Allowance (HRA) is an important part of the salary of any employee. If you also get HRA from the company, then in return you can get tax exemption while filing an income tax return. At present, people living in rented houses in Delhi, Mumbai, kolkata and chennai get the benefit of 50 percent exemption in HRA. But, cities like Bengaluru and hyderabad lag behind in this case. Despite tremendous inflation in these metro cities, you get only 40 percent exemption in HRA. In such a situation, this time the salaried class is hoping that HRA exemption can be increased in non-metro cities in the budget.

Decisions can be taken to reduce the financial burden of the salaried class

People working in big cities are hoping from the upcoming budget that Finance minister Nirmala Sitharaman can give them relief. It is expected that in this year's budget, big decisions can be taken regarding income tax slab, tax rate and standard deduction so that some financial burden on the salaried class can be reduced. According to sources, the central government can provide relief by increasing the exemption in house Rent Allowance under the Old Tax Regime.

Many cities are on the verge of coming under the purview of Metro City

HRA changes according to the city. If you live in a big city, the scope of the exemption is more and less in smaller cities. Delhi, Mumbai, kolkata and chennai were included in the scope of 50 percent HRA exemption about 30 years ago. A lot has changed in these three decades. Now many cities in the country have come under the purview of Metro City. Therefore, there is a demand to increase the HRA limit in these cities. In the year 1992, NCR, Mumbai, kolkata, Bangalore, Pune, hyderabad, Bangalore and chennai have been considered as Metro Cities. However, now cities like Ahmedabad, Surat, Kanpur are also on the threshold of meeting the standards of Metro City.

These documents are necessary to get an exemption in HRA

You can calculate HRA from your rent. Apart from this, many companies themselves give HRA to their employees. To get an exemption in HRA during income tax return, you will have to provide rent receipts, rent agreement or lease deed, letter from the landlord, proof of rent payment and Form 12BB salary slip.