Question 1

Can I claim HRA exemption if I live with my parents and pay them rent?

Accepted Answer

Yes, as long as you have a genuine rental agreement and actually transfer the rent (ideally via bank transfer, with receipts). Your parents would need to declare this rental income in their own tax return.

Question 2

What if I don't receive HRA as part of my salary?

Accepted Answer

If your employer doesn't pay HRA, you can't claim this exemption, but you may be able to claim a deduction under Section 80GG instead, subject to different limits and conditions.

Question 3

Is HRA exemption available under the New Tax Regime?

Accepted Answer

No — HRA exemption (along with most other exemptions and deductions) is only available under the Old Tax Regime. If you opt for the New Regime, your entire HRA is taxable.

Question 4

Do I need to submit rent receipts to my employer?

Accepted Answer

Yes, typically your employer requires rent receipts (and your landlord's PAN if annual rent exceeds ₹1,00,000) to allow HRA exemption in your monthly TDS calculation. You can also claim it directly while filing your return even if you didn't submit receipts to your employer.

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