Business / FM nirmala sitharaman may hike HRA exemption limit for non metro cities in budget 2023

Preparations for the General Budget (Budget 2023) to be presented on February 1, 2023 are going on vigorously towards the government. If you yourself are employed, then preparations are on from the government side to give you a big relief this time. Yes, the associate channel Zee Business.

Vikrant Shekhawat : Jan 10, 2023, 01:38 PM

HRA Exemption: Preparations for the General Budget (Budget 2023) to be presented on February 1, 2023 are going on vigorously towards the government. If you yourself are employed, then preparations are on from the government side to give you a big relief this time. Yes, the associate channel Zee Business, quoting sources, has claimed that people living in non-metro cities can get a gift in the budget. This time the government is expected to increase the scope of exemption in House Rent Allowance.

idea of increasing up to 50 percent

Zee Business claims that in the Union Budget 2023, the HRA exemption limit can be increased 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. A big plan is being made by the Finance Ministry regarding exemption in HRA.

50 percent HRA in metro cities

At present, the exemption on House Rent Allowance (HRA) for metro cities is up to a maximum of 50 percent of Basic and Dearness Allowance. Whereas, for non-metro cities, this limit is 40 percent of the total amount of basic and dearness allowance. Four cities of the country come under Delhi, Mumbai, Kolkata and Chennai Metro City. Apart from this, Pune, Bangalore, Patna, Hyderabad etc. come under non-metro category.

The matter was also raised in Parliament

Tejasvi Surya, MP from South Bengaluru demanded in Parliament that the exemption limit on HRA should be increased. There has been an increase in the rents of Bangalore, Ahmedabad, Hyderabad, Pune and Noida cities. In such a situation, there was also a demand to increase the exemption limit in HRA to 50 percent.

The limit will also increase for non-salaried.

Apart from the salaried clause, the government is also considering increasing the exemption on HRA to non-salaried individuals (businessmen). At present this limit is Rs.60,000 on the basis of Rs.5,000 per month. But it is expected to be increased to one lakh rupees in this budget. At present, under section 80GG, non-salaried individuals are exempted from HRA. It can be claimed only up to a maximum of Rs 60 thousand in a financial year.