What is the HRA limit for 2024?

The maximum House Rent Allowance (HRA) exemption you can claim is 50% of your basic salary, provided you live in a metro city. The actual HRA tax exemption is calculated as the lowest of:

1. Rent paid annually minus 10% of your basic salary
2. The HRA amount received from your employer annually
3. 50% of your annual basic salary (for metro cities)

For example, if your basic salary is ₹6 lakhs per annum and you pay ₹1.8 lakhs as rent in Mumbai, your maximum tax-free HRA will be ₹3 lakhs (50% of your basic salary).

You can deduct 30% TDS on rent paid for NRI landlords and declare it appropriately. Proper documentation is essential to ensure smooth HRA deduction claims and avoid disputes.