💰 Tax Savings · Tax-free income (Section 10)
HRA exemption — make a big part of your rent tax-free (Section 10(13A))
✍️ EaseValue Advisors · Updated 16 Jul 2026 · FY 2025-26
In short
If you're salaried and pay rent, the HRA exemption makes a large chunk of that rent tax-free — one of the biggest everyday salary savings (old regime).
How much is exempt
Your HRA exemption is the least of these three:
- Actual HRA received;
- Rent paid minus 10% of your basic salary;
- 50% of basic salary (metro cities) or 40% (non-metro).
Conditions
- You must actually pay rent and receive HRA as part of salary.
- Keep rent receipts; if annual rent exceeds ₹1 lakh, report the landlord's PAN.
- You can claim HRA and a home-loan interest deduction together in genuine cases.
No HRA? Use 80GG
Self-employed or salaried without HRA can claim a rent deduction under Section 80GG instead.
The law behind it
Section 10(13A) Rule 2A Section 80GG
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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