HRA Exemption: Complete Guide
What is HRA?#
House Rent Allowance is component of salary provided for rental accommodation.
Exemption Calculation#
Least of:
- Actual HRA received
- 50% of salary (metro) / 40% (non-metro)
- Rent paid - 10% of salary
Eligibility#
- Living in rented accommodation
- Rent paid exceeds 10% of salary
Documents Required#
- Rent agreement
- Rent receipts
- Landlord's PAN (if rent > ₹1 lakh)
Conclusion#
HRA provides significant tax saving for renters.