Claim of Hra exemption

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If you're a salaried individual looking to claim House Rent Allowance (HRA) exemption by paying rent to your parents, a formal rent agreement is highly advisable, and often required upon query. While it can typically be executed on a Rs. 100 stamp paper and notarised, it's best to check your local state's prevailing rates. Remember, HRA exemption under Section 10 (13A) is only available under the old tax regime, as the new tax regime disallows many deductions including HRA.

PRIYA

PRIYA (Querist)

19 March 2023 I am a salaried person and get monthly hra. I want to claim exemption of hra by paying rent to my parents so is it mandatory to enter into rent agreement or can I pay the rent and claim exemption?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 March 2023 In case of any query, you are required to produce original rent agreement, so it is advisable to prepare it.

PRIYA

PRIYA (Querist)

19 March 2023 Can the rent agreement be on plain paer or anything else is required?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 March 2023 In most of the states it is executed on Rs. 100/- stamp paper with notarization. Check the rates prevailing in your state.

PRIYA

PRIYA (Querist)

19 March 2023 Except 80c what other deduction can I avail for tax saving?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 March 2023 As per the Income Tax Act, salaried individuals are eligible for HRA exemptions under Section 10 (13A) per rule number 2A of the Income Tax Act. BUT ONY UNDER OLD TAX REGIME.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 March 2023 The following are some of the major deductions and exemptions you cannot claim under the New Tax Regime, while the same were eligible under OLD Tax Regime:
The standard deduction under Section 80TTA/80TTB
Professional tax and entertainment allowance on salaries
Leave Travel Allowance (LTA)
House Rent Allowance (HRA)
Minor child income allowance
Helper allowance
Children education allowance
Other special allowances [Section 10(14)]
Interest on housing loan on the self-occupied property or vacant property (Section 24)
Chapter VI-A deduction (Section 80C, 80D, 80E and so on, except Section 80CCD(2) and Section 80JJAA)
Exemption or deduction for any other perquisites or allowances including food allowance of Rs 50/meal subject to 2 meals a day
Employee's (own) contribution to NPS

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