Calculate your tax-free HRA amount under Section 10(13A) and see exactly how much tax you save.
House Rent Allowance (HRA) is a component of salary paid by employers to cover rental costs. Employees who receive HRA and pay rent can claim an exemption under Section 10(13A) of the Income Tax Act. Self-employed individuals cannot claim HRA (they use Section 80GG instead).
Yes — you can pay rent to your parents and claim HRA, as long as the rent is genuine, documented with a rent agreement and receipts, and your parents declare it as rental income in their ITR. Your parents' property must be in their name.
If your annual rent exceeds ₹1 lakh (₹8,333/month), you must provide your landlord's PAN to your employer. For rent below ₹1 lakh, receipts are typically sufficient. Your employer uses these to compute TDS correctly.
Yes — if you own a property in one city and rent in another (e.g., you work in Mumbai but own a house in Hyderabad), you can claim both HRA exemption and home loan interest deduction simultaneously.
If your employer doesn't pay HRA (common for self-employed or those with HRA not included in salary), you can claim rent deduction under Section 80GG — minimum of: ₹5,000/month, 25% of total income, or actual rent minus 10% of total income. However, you or spouse/minor child must not own a house in the city you're renting in.