The Statutory Brief

IT Act 1961 → 2025 / Section 10(13A)

Salary

Section 10(13A) → Schedule III

House rent allowance (HRA) exemption

Section 10(13A) of the old Income-tax Act, 1961 · new Schedule III under the Income-tax Act, 2025

New reference Schedule III, Table Sl. No. 11

Income-tax Act, 1961Section 10(13A)

  • HRA exempt to the extent prescribed in Rule 2A: least of actual HRA, rent paid minus 10% of salary, and 50%/40% of salary
  • Assessee must actually pay rent and not own the house occupied
  • Old regime only

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Schedule III, Table Sl. No. 11

  • Schedule III (income not included for eligible persons), Table Sl. No. 11
  • Conditions: allowance granted to meet rent, accommodation not owned, rent actually paid
  • Exempt amount to the extent prescribed, having regard to the place of accommodation

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Moved from section 10 into Schedule III. The formula is still prescribed by the Rules rather than written into the Act.

Practice notes

  • The computation limits (metro/non-metro percentages) are in the Income-tax Rules, 2026; check the current rule for the city list before computing.
  • Not available under the default new regime.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Where is HRA exemption in the new Income Tax Act 2025?

Schedule III, Table Sl. No. 11 of the Income-tax Act, 2025 (old section 10(13A)), with the computation prescribed in the Income-tax Rules.

What is section 10(13A) called in the new Income-tax Act, 2025?

Section 10(13A) of the Income-tax Act, 1961 corresponds to Schedule III, Table Sl. No. 11 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 10(13A) under the new Income Tax Act?

Moved from section 10 into Schedule III. The formula is still prescribed by the Rules rather than written into the Act.

Is section 10(13A) still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 10(13A) of the 1961 Act. Schedule III, Table Sl. No. 11 of the 2025 Act applies from tax year 2026-27.

Related sections

16→19Deductions from salary: standard deduction, professional tax (and gratuity exemption)192→392TDS on salary (and on withdrawal of accumulated PF balance)115BAC→202New tax regime (default) for individuals, HUFs, AOPs, BOIs and artificial juridical persons