Under Section 10 (13A) of the I-T Act, 1961, salaried employees can claim HRA exemption. Per Rule 2A of the I-T Rules, 1962, the exempt amount is the least of the following: 1) actual HRA received, 2) 40 percent of (basic salary + Dearness Allowance ( DA)) (50 percent for Mumbai, Kolkata, Delhi, and Chennai) 3) actual rent paid - 10 percent of (basic salary + Dearness Allowance) https://cleartax.in/s/section-10-of-income-tax-act