Claiming a tax exemption on your House Rent Allowance (HRA) in India without rent receipts has a limit. This depends on your city type and the lowest amount among three factors: your HRA amount, a calculated value based on your salary (40% for non-metro, 50% for metro), plus your dearness allowance minus 10% of your salary and DA, and your actual annual rent minus 10% of your salary and DA. This calculation ensures the maximum exempt amount stays lower than your HRA, salary percentage, or actual rent (minus 10% of salary). For example, a metro resident with ₹15,000 HRA, ₹20,000 salary calculation, and ₹12,000 rent could claim a maximum exemption of ₹12,000 (actual rent) as it's the lowest value.
