House Rent Allowance exemption. Fast, accurate, and completely free.
HRA exemption is calculated under Section 10(13A) of the Income Tax Act, 1968, and is only available under the Old Tax Regime.
Enter your annual Basic Salary plus Dearness Allowance (DA).
Input the HRA component received from your employer annually.
Enter the total annual Rent Paid to your landlord.
Select whether you live in a Metro city (Delhi, Mumbai, Kolkata, Chennai) or a Non-Metro city.
House Rent Allowance (HRA) is an important component of a salaried employee's compensation package. Under Section 10(13A) of the Income Tax Act, HRA tax exemption can be claimed to significantly reduce your taxable income.
HRA exemption can only be claimed if you are actually living in rented accommodation. If you live in your own house, the entire HRA received is fully taxable. HRA tax exemptions are not available under the New Tax Regime.
Yes, you can pay rent to your parents and claim HRA tax exemption. However, the rent must be transferred to their account, they must declare it in their tax returns, and you must have a formal rent agreement.
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