HRA
House Rent Allowance, a part of salary that can be partly tax-free if you pay rent, under the old regime.
HRA, or House Rent Allowance, is a part of many salaries meant to cover rent. If you actually pay rent, a portion of your HRA can be tax-free, but only under the old tax regime. The exempt amount depends on your salary, rent, and city, so check the current rules on incometax.gov.in.
Questions people ask
What is the full form of HRA?
HRA stands for House Rent Allowance, a part of many salaries meant to cover rent. If you actually pay rent, some of it can be tax-free under the old tax regime.
How is the HRA exemption calculated?
It is the lowest of three amounts: the actual HRA you receive, 50% of your basic salary in a metro city (40% elsewhere), and the rent you pay minus 10% of your basic salary. The smallest of these is tax-free. Confirm the current rule on incometax.gov.in.
Can I claim HRA in the new tax regime?
No. The HRA exemption is available only under the old regime. If you choose the new regime, HRA is taxed as normal salary.
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