House Rent Allowance exemption under section 10(13A) is allowed if Salaried individuals getting House Rent Allowance as part of salary and full fill below two conditions:
He has taken a residential accommodation in which he resides on rent.He has not occupied such property in which he resides.
If you don’t live in a rented accommodation. You live with your parents in their house. In that case also, you can claim HRA. However there should be a rent agreement, and parents must show this rental income in their Income Tax Return.
HRA Exemption can be claimed whichever is least on the following basis:-
Actual HRA Received
Rent paid minus 10% of Salary
40% of salary if he resides in Non Metro City or 50% of salary if resides in Metro City.
If rent paid during the financial year exceeds Rs.1,00,000, PAN of landlord is necessary.