Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
House Rent Allowance is a salary component for employees paying rent, partially exempt from income tax under Section 10(13A).
HRA is the rent allowance from employer — part of it can be tax-free if you live in a rented house and claim correctly.
Exemption is minimum of: actual HRA received, 50%/40% of salary (metro/non-metro), or rent paid minus 10% of salary. New tax regime generally disallows HRA exemption. Rent receipts and PAN of landlord required for claims above ₹1 lakh annually.
Salary ₹60,000/month, HRA ₹18,000, rent ₹15,000 in Mumbai. Exemption calculated on ₹15,000 rent minus 10% basic, capped at HRA — may save ₹40,000+ annual tax in old regime.
Generally no for same city. Different rules if you own in one city and rent in another — consult tax advisor for dual scenarios.
Possible if rented residence differs from owned property city or specific conditions met. Both benefits not on same property typically.
Required if annual rent exceeds ₹1 lakh. Without PAN, higher TDS may apply on rent paid.