A salary earning individual of this country pays income-tax to the Government. We pay taxes not only on our income but on goods and services we buy, on entertainment spends like games, movies and almost everything that you can think of.

We receive House Rent Allowance as a portion of our salary (This can be upto 50% of basic salary). While calculating amount for tax exemption on house rent paid, following rules apply: 

Minimum of: 

1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

We are concerned about the 2nd clause above.

While we pay 'X' amount as house rent, why should we get the tax exemption only on amount equal to X - (10% Of Basic)?

In addition, the differentiation between metro and non-metro cities has already begun to dilute with rental values soaring sky high in non-metro cities like Pune and Gurgaon. However accordingly to clause 3 above, one is eligible for HRA exemption only on 40% of their basic salary even though they might be paying high rent in a non-metro city.

It is time that the rules to calculate the tax exemption limit on HRA need revision and simplification.

This petition is a request to our honorable Fin. Minister Arun Jaitley Ji to bring a change to the tax exemption rules for HRA.

We request to,

1. Remove the deduction of 10% from the Actual Rent Paid in clause 2, and,
2. Expand list of Metro cities to include cities like Gurgaon and Pune, where rental costs are sky high.

If you are a salaried employee and are in favor of this petition, please sign it and forward it to your friends-n-family to help reach the target.