2 min read.Updated: 13 Aug 2020, 03:51 PM ISTRenu Yadav
House rent allowance (HRA) is one of the major exemptions that employees claim, which helps them bring down their tax liability.
Rishab Chowdhary, 24, working with a research firm in Noida moved to his home town, Rishikesh, in July to stay with his parents as his company gave mandatory work from home in March post the lockdown. Chowdhary will be saving on the rent that accounted for 15% of his salary. However, he will not be able to claim the house rent allowance (HRA) exemption against for the number of months he will be staying with his parents, which will increase his tax liability for the year.