How to calculate HRA? Income tax benefits explained
House rent allowance or HRA is a key component of your salary
You can pay rent to your parents and claim HRA exemption
House rent allowance or HRA is a key component of your salary. An employer pays HRA to the employee to provide for his rented accommodation. The Income Tax Act allows a salaried employee to claim HRA exemption under Section 10(13A). If an employee is living in his own house and does not pay rent, he cannot claim this exemption. But he can claim the HRA exemption if he is living with his parents and paying rent to them.