HRA exemption in new tax regime

Ask the Community Income Tax
1

Hi Community-

I was reading posts here on HRA claims:
What are some steps for claiming HRA deduction? &
Questions on HRA benefits and claims

Is HRA exemption available in new tax regime? How can points said in above articles be availed?

Please provide your suggestions.

Regards,
Anushri

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2

Hi Anushri,

Employees who opt for the new tax regime will not be applicable for HRA exemption .

Regards,
Chethan

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3

Hi,

Under the New Income Tax Regime, there will be lower tax slabs and lower rates, but no HRA exemption.

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4

Salaried employees who opt for the new tax regime for FY 20-21 will have to forgo the standard deductions as well as the exemptions under chapter VI-A including the House Rent Allowance (HRA) , Investments under Section 80C (LIC, PF, PPF, etc.), Sec 80D (Medical Insurance Premium) and even the leave travel allowance (LTA) which is tax free if claimed once in a block of two years.

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5

True! Agree with @Ankit.

In fact, there is a higher chance of changes/relaxations coming under the new tax regime by next year with collective inputs from citizens.

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