House Rent Allowance (HRA) is second
component which is found in each pay slip after basic salary. This is the major contributor in tax relief
for the employee who reside in rented house during his/her employment.
As
announced in budget 2020, taxpayers who wish to opt for the New Income Tax
Regime from AY 2021-2022 cannot claim the exemption of House Rent Allowance.
Generally employee submits Rent receipt and
rent deed to his employer to claim exemption of tax on account of HRA but there are so many doubts & questions arise while calculating & claiming exemption of tax from HRA which I am trying to summaries here in “question-answer form”. your input in form of suggestion or query is solicited and most welcome :-