HRA exempt (per year)
₹0
tax-free
Actual HRA received (yr) ₹0
Rent − 10% of basic (yr) ₹0
50%/40% of basic (yr) ₹0
Taxable HRA (yr) ₹0
How HRA exemption works
Your exempt HRA is the least of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for other cities. The rest of your HRA is taxable. This benefit is available only in the old tax regime.
FAQs
Least of: actual HRA, rent − 10% of basic, and 50% (metro) / 40% (non-metro) of basic.
Only Delhi, Mumbai, Kolkata and Chennai — these use 50%. All others use 40%.
No. HRA exemption applies only under the old regime; in the new regime HRA is fully taxable.