HRA (House Rent Allowance)
Definition
Component of salary paid by employer towards rent, exempt from tax under Section 10(13A) subject to conditions. Only available under the Old Tax Regime.
In Context
HRA exemption = minimum of: (1) actual HRA received, (2) 50% of salary (metro cities) or 40% (non-metro), (3) actual rent paid minus 10% of salary. Not available under New Tax Regime. Salaried individuals living with parents can pay rent to parents and claim HRA.
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