HRA Exemption Rules: How to save tax on House Rent Allowance

15 Jan

The benefit is available only to a salaried individual who receives HRA as a part of his salary and is staying in a rented accommodation.

For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961.

The amount of HRA exemption is deductible from the total income before arriving at a taxable income. This helps an employee to save tax. But do keep in mind that the HRA received from your employer, is fully ta ..

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