{"id":7053,"date":"2025-06-25T11:21:42","date_gmt":"2025-06-25T11:21:42","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7053"},"modified":"2025-06-25T11:21:45","modified_gmt":"2025-06-25T11:21:45","slug":"hra-house-rent-allowance","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/hra-house-rent-allowance\/","title":{"rendered":"HRA : House Rent Allowance"},"content":{"rendered":"<p><strong>House Rent Allowance (HRA)<\/strong> is a component of your salary provided by your employer to help cover your rental <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a>. Under Section 10(13A) of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a>, a portion of HRA can be exempted from <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">income tax<\/a>, provided certain conditions are met.<\/p>\n\n\n\n<h2 id=\"what-is-house-rent-allowance-hra\" class=\"wp-block-heading\">What is House Rent Allowance (HRA)?<\/h2>\n\n\n\n<p>HRA is an allowance paid by employers to employees to assist in covering the cost of renting a home. While it&rsquo;s a part of your salary and <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>able income, you can claim tax exemption on a portion of it if you live in rented accommodation and meet specific criteria.<\/p>\n\n\n\n<h2 id=\"who-can-claim-hra-exemption\" class=\"wp-block-heading\">Who Can Claim HRA Exemption?<\/h2>\n\n\n\n<p>To be eligible for HRA exemption:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You must be a salaried individual receiving HRA as part of your salary.<\/li>\n\n\n\n<li>You should live in rented accommodation and pay rent.<\/li>\n\n\n\n<li>The rent paid should exceed 10% of your basic salary.<\/li>\n\n\n\n<li>You must not own the residence you are living in.<\/li>\n\n\n\n<li>You should not be paying rent to your spouse.<\/li>\n<\/ul>\n\n\n\n<p><em>Note: HRA exemption is available only under the old tax regime.<\/em><\/p>\n\n\n\n<h2 id=\"how-is-hra-exemption-calculated\" class=\"wp-block-heading\">How is HRA Exemption Calculated?<\/h2>\n\n\n\n<p>The exempted amount of HRA is the least of the following three:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Actual HRA received<\/strong> from your employer.<\/li>\n\n\n\n<li><strong>50% of your salary<\/strong> (basic + <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dearness-allowance\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">dearness allowance<\/a>) if you reside in a metro city (Delhi, Mumbai, Kolkata, Chennai); <strong>40%<\/strong> if you live in a non-metro city.<\/li>\n\n\n\n<li><strong>Actual rent paid minus 10% of your salary<\/strong> (basic + dearness allowance).<\/li>\n<\/ol>\n\n\n\n<h2 id=\"example-calculation\" class=\"wp-block-heading\">Example Calculation<\/h2>\n\n\n\n<p>Let&#x2019;s consider an example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Basic Salary<\/strong>: &#x20B9;30,000 per month<\/li>\n\n\n\n<li><strong>HRA Received<\/strong>: &#x20B9;15,000 per month<\/li>\n\n\n\n<li><strong>Rent Paid<\/strong>: &#x20B9;12,000 per month<\/li>\n\n\n\n<li><strong>City<\/strong>: Delhi (Metro)<\/li>\n<\/ul>\n\n\n\n<p><strong>Calculations<\/strong>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Actual HRA received annually: &#x20B9;15,000 &#xD7; 12 = &#x20B9;1,80,000<\/li>\n\n\n\n<li>50% of annual salary: 50% of (&#x20B9;30,000 &#xD7; 12) = &#x20B9;1,80,000<\/li>\n\n\n\n<li>Rent paid minus 10% of salary: (&#x20B9;12,000 &#xD7; 12) &#x2013; 10% of (&#x20B9;30,000 &#xD7; 12) = &#x20B9;1,44,000 &#x2013; &#x20B9;36,000 = &#x20B9;1,08,000<\/li>\n<\/ol>\n\n\n\n<p><strong>Exempted HRA<\/strong>: The least of the above is &#x20B9;1,08,000.<\/p>\n\n\n\n<h2 id=\"documents-required-to-claim-hra\" class=\"wp-block-heading\">Documents Required to Claim HRA<\/h2>\n\n\n\n<p>To claim HRA exemption, ensure you have:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rent receipts<\/strong> with landlord&#x2019;s details.<\/li>\n\n\n\n<li><strong>Rental agreement<\/strong> (if available).<\/li>\n\n\n\n<li><strong>PAN of the landlord<\/strong> if annual rent exceeds &#x20B9;1 lakh.<\/li>\n\n\n\n<li><strong>Proof of rent payment<\/strong>, such as bank statements or payment receipts.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"special-cases\" class=\"wp-block-heading\">Special Cases<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Living with Parents<\/strong>: You can claim HRA by paying rent to your parents, provided there&#x2019;s a rental agreement, and the rent is transferred to their account. Your parents must report this income in their tax returns.<\/li>\n\n\n\n<li><strong>Owning a House in Another City<\/strong>: If you own a house in one city but live in rented accommodation in another due to work, you can claim HRA for the rented house.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"important-points\" class=\"wp-block-heading\">Important Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HRA exemption is <strong>not available<\/strong> under the <strong>new tax regime<\/strong>.<\/li>\n\n\n\n<li>Self-employed individuals <strong>cannot<\/strong> claim HRA but may claim deductions under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80gg\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80GG<\/a>.<\/li>\n\n\n\n<li>Ensure all documents are accurate and submitted timely to avoid issues during tax assessments.<\/li>\n<\/ul>\n\n\n\n<p>For a quick calculation of your HRA exemption, you can use online HRA calculators provided by various financial websites.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>House Rent Allowance (HRA) is a component of your salary provided by your employer to help cover your rental expe<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">nse<\/a>s. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be exempted from income tax, provided certain conditions are met. What is House Rent Allowance (HRA)? HRA is an allowance paid by [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7053","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7053\/revisions"}],"predecessor-version":[{"id":7054,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7053\/revisions\/7054"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}