The 3 Rules of HRA Exemption
Under Section 10(13A), your tax-free HRA is the minimum of these three conditions:
- Actual HRA Received: ₹3,00,000
- Rent Paid minus 10% of (Basic + DA): ₹1,56,000 (If your rent is less than 10% of your basic salary, your exemption is zero!)
- 50% of (Basic + DA): ₹3,00,000 (You selected a Metro city.)
Important: If you pay rent exceeding ₹1,00,000 per year (₹8,333/month), you are legally required to submit your landlord's PAN to your employer to claim this exemption.