Calculate your HRA exemption (earlier Section 10(13A), now under the Income-tax Act, 2025). The minimum of 3 conditions is exempt from tax. Whether the exemption is available depends on your tax regime; this page does not confirm that for tax year 2026-27.
| Condition | Amount |
| ① Actual HRA received | — |
| ② 50%/40% of Salary | — |
| ③ Rent paid – 10% of Salary | — |
| HRA Exempt (Minimum of above) | — |
| HRA Taxable | — |
| Annual HRA Exempt | — |
This only applies the three-condition formula described below to the numbers you typed. Whether HRA exemption is available to you depends on your tax regime and your actual salary terms. This page does not confirm that for tax year 2026-27, so treat "exempt" and "taxable" as formula outputs, not a tax filing figure.
The HRA exemption is the minimum of these three amounts: (1) Actual HRA received from employer, (2) 50% of salary if you live in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad or Bengaluru, or 40% in any other place (the list of eight places is in Rule 279 of the Income-tax Rules, 2026, notified on 20 March 2026 as G.S.R. 198(E) and in force from 1 April 2026; earlier only the first four had the 50% limit. The rule's table (read in the notified Rules PDF) lists these eight places at 50% and any other place at 40%, and says salary includes dearness allowance if it is part of the terms of employment but excludes other allowances: notified Rules 2026, Income Tax Department), where "salary" means basic plus dearness allowance if it forms part of your terms of employment, (3) Actual rent paid minus 10% of salary (the same salary definition).
Salary (Basic + DA): ₹50,000/month | HRA received: ₹20,000 | Rent paid: ₹18,000 | City: Non-metro
① ₹20,000 | ② 40% × ₹50,000 = ₹20,000 | ③ ₹18,000 – ₹5,000 = ₹13,000
Minimum = ₹13,000/month is exempt. Annual exemption = ₹1,56,000.
You must actually reside in a rented accommodation. You cannot claim HRA if you own the house you live in. Whether the HRA exemption is available depends on the tax regime you choose; this page does not confirm the rule for tax year 2026-27, so check the current rules. Your employer will ask for rent receipts and landlord details under its own declaration process.
Q: Can I claim HRA if I work from home?
A: Yes, as long as you are actually paying rent for that accommodation, HRA exemption can be claimed even while working from home.
Q: Can I claim both home loan interest and HRA?
A: That depends on the conditions for each deduction and on your tax regime. Check the current rules or ask a tax professional.
Q: What documents are needed for HRA claim?
A: Usually rent receipts or a rent agreement and a declaration of the rent actually paid. Your employer's payroll team will tell you what it needs.
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