Tax
HRA
Also known as: House Rent Allowance
A salary component that gives tax relief on rent you actually pay, under the old regime.
HRA is part of your salary meant to cover rent. If you live in rented housing, a chunk of it can be tax-exempt.
The exempt amount is the lowest of three formulas involving your salary, actual rent, and city. Metros get a more generous limit.
You need rent receipts, and if annual rent crosses ₹1L, your landlord's PAN. It only helps in the old regime.
For example
In a metro, paying ₹25,000/month rent with a decent HRA component can make a large part of that HRA tax-free under the old regime.