House rent allowance is part of salary. Under the old tax regime, part of it can be exempt from tax if the employee pays rent.
The exempt amount is the lowest of three figures: HRA received, rent paid minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic.
The new tax regime generally does not allow this exemption.
You can work it out with the free HRA calculator.
Dates and rules change. Check the current notification or ask your adviser before relying on this page.
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