How HRA Exemption Works under Section 10(13A)
House Rent Allowance (HRA) is paid to employees to meet accommodation expenses. By submitting valid rent receipts and landlord PAN to your employer in Form 12BB, you can claim maximum tax exemption.
Frequently Asked Questions (FAQs)
How is HRA tax exemption calculated?
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) Rent paid minus 10% of Basic Salary + DA, (3) 50% of Basic Salary (Metro: Delhi, Mumbai, Kolkata, Chennai) or 40% of Basic (Non-Metro).
Can I claim HRA if I live in my own house?
No. To claim HRA exemption, you must actually incur expenditure on rent for residential accommodation occupied by you.
