HRA (House Rent Allowance) is an allowance your employer pays to cover your rental accommodation costs. Part of your HRA is exempt from tax under Section 10(13A) of the Income Tax Act 2025. The exemption is the minimum of: (a) actual HRA received, (b) 50% of salary (for metro cities) or 40% (for non-metro), or (c) rent paid minus 10% of basic salary. You can claim HRA if you receive a salary that includes this allowance and pay rent.
