1. HRA is applicable to employees living in rented accommodation.
2. It is not applicable for self-employed individuals and those who live in their own houses.
3. HRA cannot exceed more than 50% of your basic salary.
4. HRA tax exemption is limited to the least of:
a) Actual amount allotted by the employer as HRA; or
b) Actual rent paid, less 10% of basic salary; or
c) 50% of basic salary, if staying in a metro city (40% for a non-metro city).
5. Tax benefits on HRA and home loan can both be availed if staying on rent in another house.
6. If staying with parents, HRA can be claimed by paying rent to them upon collection of receipt.
7. If monthly rent exceeds 3000, rent receipts are needed for HRA.
8. Landlord's PAN is mandatory for rent exceeding one lakh per year.
9. If NRI landlord, 30% tax from rent amount is to be deducted and deposited.
10. HRA benefits are available for only one house in the concerned city of the workplace.
11. HRA is paid towards rent only and not on maintenance and water / electricity charges.
12. HRA doesn't fall under Sec 80C but under Sec 10(13A).
2. It is not applicable for self-employed individuals and those who live in their own houses.
3. HRA cannot exceed more than 50% of your basic salary.
4. HRA tax exemption is limited to the least of:
a) Actual amount allotted by the employer as HRA; or
b) Actual rent paid, less 10% of basic salary; or
c) 50% of basic salary, if staying in a metro city (40% for a non-metro city).
5. Tax benefits on HRA and home loan can both be availed if staying on rent in another house.
6. If staying with parents, HRA can be claimed by paying rent to them upon collection of receipt.
7. If monthly rent exceeds 3000, rent receipts are needed for HRA.
8. Landlord's PAN is mandatory for rent exceeding one lakh per year.
9. If NRI landlord, 30% tax from rent amount is to be deducted and deposited.
10. HRA benefits are available for only one house in the concerned city of the workplace.
11. HRA is paid towards rent only and not on maintenance and water / electricity charges.
12. HRA doesn't fall under Sec 80C but under Sec 10(13A).