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HRA is exempted from tax only if you pay rent

HRA is exempted from tax only if you pay rent

Friday, July 14, 2017, 10:15 AM

If you are receiving House Rent Allowance (HRA) as part of your salary and also pay rent for residential accommodation then you can claim the HRA paid to you as exempt from tax subject to certain limits and restrictions. However, if no rent is paid by you, then whole HRA received is taxable.
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