House Rent Allowance (HRA) Exemption u/s 10(13A)
Salaried individuals living in rented houses (paying rent) can claim the House Rent Allowance (HRA). If you do not live in rented accommodation, this allowance is fully taxable.
To claim the HRA exemption, HRA must be part of your salary. If your employer does not provide you the HRA or if you are self employed, then you can claim the deduction under section 80GG.
The amount of rent paid cannot be claimed as HRA Exemption directly. The HRA exemption shall be lower of the below 3 amounts
1. Actual HRA received;
2. 50% of [Basic Salary + Dearness Allowance] for those living in metro cities (40% for non-metros);or
3. Actual rent paid less 10% of [Basic Salary + Dearness Allowance]
Use the HRA Calculator to calculate the HRA exemption amount.
Note: If you see any auto populated amount under HRA exemption, then it is captured from the form-16 that you have uploaded. This value is not calculated by ClearTax.