New Delhi, Oct. 12 -- Salaried employees can pay rent to their parents and claim House Rent Allowance (HRA) exemption, provided the rental arrangement is genuine and meets the applicable income-tax conditions. The fact that the landlord is a parent does not automatically disqualify an employee from claiming the exemption.

However, employees must actually occupy the rented accommodation, pay rent and maintain supporting documents. The exemption is available under the old tax regime, while taxpayers opting for the new tax regime cannot claim HRA exemption under Section 10(13A) of the Income-tax Act, 1961.

The HRA exemption is the lowest of the following three amounts:

For this calculation, salary generally includes basic salary, eligible...