New Delhi, June 24 -- The Central Board of Direct Taxes (CBDT) has introduced significant changes to House Rent Allowance (HRA) rules, expanding benefits for taxpayers in several major urban centres while also tightening compliance requirements. CA Ruchika Bhagat, MD, Neeraj Bhagat & Co. explains what has changed and what the taxpayers should check if they are claiming HRA.

House Rent Allowance is a salary component provided by employers to help employees meet rental housing expenses. Under Section 10(13A) of the old tax regime, a salaried employee living in rented accommodation can claim HRA as a partial tax exemption under the old income tax regime.

House Rent Allowance is an integral part of your salary structure, provided to cover t...