HRA is not an 80C deduction
House Rent Allowance (HRA) reduces salary income as an exempt allowance u/s 10 — not a Chapter VI-A line like 80C. Your Form 16 Part B may already show "HRA exemption" if payroll approved your rent declaration.
If you paid rent but got no HRA component, look at Section 80GG instead (different rules — you cannot own a house in the city).
How exemption is calculated (minimum of three)
- Actual HRA received from employer
- Rent paid minus 10% of salary (salary definition usually basic + DA for HRA)
- 50% of salary in metro (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere
Employers compute this in Form 16 when you submit rent receipts during the year.
What you should do
- Collect rent receipts or registered agreement for FY 2025-26
- Get landlord PAN if annual rent exceeds ₹1 lakh
- Match Form 16 HRA exempt amount to your proofs before ITR entry
- Choose old tax regime if HRA is your biggest tax saver
- Run regime compare with rent — LastMinute ITR highlights when Part B HRA suggests old regime edge
Common mistake
Claiming HRA while filing new regime. Exemption will not apply — you lose expected savings and may owe balance tax.
Another: Metro vs non-metro rate wrong after moving cities mid-year — exemption depends on rent actually paid and city rules; stale payroll data causes Form 16 vs reality gaps.
No HRA on Form 16 but claiming large HRA in ITR without 80GG eligibility — scrutiny risk.
ITR entry notes
Enter gross salary and allowance breakup per portal schedules — exemption flows from computation, not a standalone "HRA deduction" row like 80C.
Related
Check your ITR with LastMinute before filing on incometax.gov.in.