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[Music] hi everyone and welcome to todays segment on alliance and deduction i am sijani from cleartax and today lets talk about house rent alliance or hra salvade individuals who live in rented houses can claim the hra to lower their taxes partially or only the allowance is for expenses related to rented accommodation if you dont claim hra exemption by submitting rent receipts to your employer alternatively you can claim this exemption yourself by filing your itr primarily hra is decided based on the salary however some other factors also affect hrm for example the city you reside in the actual hra offered will be the lowest of the following three provisions the actual rent that is paid should be less than 10 of the basic salary in case youre staying in a metro 50 of the basic salary and 40 if you live in a non-metro city the actual amount received as the hra from the employer you may even claim hra and deduction on home loan interest you must provide your landlord spend if you pay