New Delhi, Oct. 9 -- House rent allowance (HRA) can be a key tax-saving component of the salary for many salaried employees. However, tax exemption on this allowance is available only under the old tax regime, meaning employees who opt for the new tax regime must pay tax on the entire HRA received as part of their salary.

Since this salary component is intended to help employees meet their rental expenses in a city where they are employed, paying rent for multiple properties, such as a home near the workplace and another for parents living in a different city, can complicate HRA claims.

HRA exemption is allowed under Section 10(13A) of the Income-tax Act, subject to certain conditions. One of the key requirements is that the allowance m...