House related · allowance
House rent allowance (HRA)
HRA is exempt to the extent of the least of three statutory limbs — old regime only.
How the taxable value is determined
Exempt = least of actual HRA, rent paid minus 10% of salary, and 50% of salary in metros or 40% elsewhere. Withdrawn under the new regime.
Regime availability
- Old regime
- Available
- New regime
- Not available
Documentation to keep
Rent receipts, rent agreement, and the landlord's PAN where annual rent exceeds ₹1,00,000.
Legal basis: Section 10(13A) and Rule 2A, Income-tax Rules
Frequently asked questions
Is house rent allowance (hra) taxable in India?
HRA is exempt to the extent of the least of three statutory limbs — old regime only. Exempt = least of actual HRA, rent paid minus 10% of salary, and 50% of salary in metros or 40% elsewhere. Withdrawn under the new regime.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is not available. Legal basis: Section 10(13A) and Rule 2A, Income-tax Rules.
What records should I keep for house rent allowance (hra)?
Rent receipts, rent agreement, and the landlord's PAN where annual rent exceeds ₹1,00,000.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.