Is HRA  Allowed In New Tax Regime?

Is HRA  Allowed In New Tax Regime?

Apr 18, 2023

Rajeev Kumar

Many salaried employees are still confused about House Rent Allowance exemption under New Tax Regime. Read on to find out details

HRA exemption is not allowed under the New Tax Regime.

The only deduction allowed under the new regime for salaried individuals is Standard Deduction of Rs 50,000.

If you want to claim HRA benefit, you should opt for the Old Tax Regime.

Salaried employees living in rented accommodation are eligible to lower their taxes to some extent with the help of HRA provided by their employers.

The income tax rules allow deduction of the salary component received as HRA from the taxable salary income.

However, HRA is fully taxable for an employee not living in a rented house.

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