HRA forms part of an employee’s salary package and is intended to offset rental housing costs. Although HRA is treated as taxable income, the Income Tax Act allows a portion of it to be claimed as exempt under Section 10(13A), subject to prescribed conditions, when the old tax regime is chosen.
Taxes in 2026: Paying rent to parents to claim HRA is legal; here’s how to save up to Rs 1.2 lakh
