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<h1>HRA Tax Exemption Rules Under Section 10(13A) and Rule 2A Explained Simply</h1> House Rent Allowance (HRA) paid by an employer to an employee for rented accommodation is eligible for income tax exemption under Section 10(13A) read with Rule 2A, provided the employee actually pays rent for a house not owned by them. The exemption is the least of the allowance received, rent paid exceeding 10% of salary, or 50% of salary in metro cities and 40% in others. Salary includes basic pay, dearness allowance (if applicable), and commission based on a fixed turnover percentage. No exemption is allowed if rent is not paid. HRA cannot exceed 50% of basic salary. Rent paid to parents is eligible for exemption if supported by receipts, but rent paid to a spouse is not. For annual rent above Rs. 1,00,000, the landlord's PAN or declaration is required, and if the landlord is an NRI, 30% tax must be deducted from rent paid.