How HRA exemption works
Under section 10(13A), the tax-free part of your HRA is the lowest of: the HRA you receive; rent paid minus 10% of your salary; and 50% of salary in a metro or 40% elsewhere. Salary here means basic pay plus dearness allowance.
From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad join Mumbai, Delhi, Kolkata and Chennai in the 50% group. HRA exemption is only available in the old tax regime; keep rent receipts, and your landlord's PAN if rent is over ₹1 lakh a year.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer.