General information only; not financial or tax advice. Laws and lender policies change—verify specifics before acting.
Rules may change—check the latest before filing.
House Rent Allowance (HRA) can reduce taxable salary if you pay rent. Calculate exemption as the least of: actual HRA received, excess of rent over 10% of basic pay, and 50% (metro)/40% (non‑metro) of basic.
Maintain documentation and evaluate old vs new regime impact.
- If living with parents, formalise rent with receipts; parents must declare income.
- Claim accurately through employer to reflect in Form 16.
- Switch regimes thoughtfully—HRA not available in new regime.