{"id":609,"date":"2026-06-12T10:38:14","date_gmt":"2026-06-12T10:38:14","guid":{"rendered":"https:\/\/mybharatportal.com\/tools\/?page_id=609"},"modified":"2026-10-24T08:26:57","modified_gmt":"2026-10-24T08:26:57","slug":"hra-calculator","status":"publish","type":"page","link":"https:\/\/mybharatportal.com\/tools\/hra-calculator\/","title":{"rendered":"HRA Exemption Calculator 2026"},"content":{"rendered":"\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h1 class=\"wp-block-heading\">HRA Calculator \u2014 FY 2025-26 &amp; FY 2026-27 (Notified 8-Metro-City Rule)<\/h1>\n\n\n\n<style>\n  :root{\n    \/* Same palette as the PM-KISAN tool: Indian flag colors only *\/\n    --cream:#FFFDF7;\n    --cream-deep:#FFF6E4;\n    --line:#E7DCC2;\n    --white:#FFFFFF;\n    --green:#138808;\n    --green-deep:#0B5A05;\n    --green-pale:#E5F3E1;\n    --saffron:#FF9933;\n    --saffron-deep:#B85E00;\n    --saffron-pale:#FFF1DE;\n    --navy:#0B3D91;\n    --navy-pale:#E7ECF7;\n    --ink:#22271C;\n    --ink-soft:#5F6857;\n    --radius:14px;\n    --font-display:'Newsreader', Georgia, serif;\n    --font-body:'Hind', -apple-system, sans-serif;\n    --font-mono:'IBM Plex Mono', 'Courier New', monospace;\n  }\n\n  .hra-card *{ box-sizing:border-box; }\n\n  .hra-card{\n    max-width:600px;\n    margin:0 auto;\n    background:var(--cream);\n    border:1px solid var(--line);\n    border-radius:var(--radius);\n    font-family:var(--font-body);\n    color:var(--ink);\n    overflow:hidden;\n    box-shadow:0 1px 3px rgba(34,39,28,0.07), 0 10px 28px rgba(34,39,28,0.06);\n  }\n\n  .hra-header{\n    background:linear-gradient(135deg, var(--saffron-pale) 0%, var(--cream-deep) 100%);\n    padding:24px 26px 20px;\n    border-bottom:1px solid var(--line);\n  }\n  .hra-eyebrow{\n    font-family:var(--font-mono);\n    font-size:11px;\n    letter-spacing:0.1em;\n    text-transform:uppercase;\n    color:var(--navy);\n    font-weight:600;\n    display:flex; align-items:center; gap:7px;\n    margin-bottom:8px;\n  }\n  .hra-eyebrow::before{ content:\"\ud83c\udfe0\"; font-size:13px; }\n  .hra-title{\n    font-family:var(--font-display);\n    font-size:25px;\n    font-weight:700;\n    color:var(--ink);\n    margin:0 0 6px;\n    letter-spacing:-0.01em;\n  }\n  .hra-sub{ font-size:13.5px; color:var(--ink-soft); line-height:1.5; }\n  .hra-sub strong{ color:var(--green-deep); }\n\n  .hra-body{ padding:22px 26px 8px; }\n  .hra-section{ margin-bottom:20px; }\n  .hra-section-label{\n    font-family:var(--font-mono);\n    font-size:11px;\n    font-weight:600;\n    text-transform:uppercase;\n    letter-spacing:0.06em;\n    color:var(--ink-soft);\n    margin-bottom:10px;\n  }\n\n  .hra-toggle-row{ display:flex; gap:8px; flex-wrap:wrap; }\n  .hra-toggle{\n    flex:1; min-width:140px;\n    text-align:center;\n    padding:10px 12px;\n    border-radius:9px;\n    border:1.5px solid var(--line);\n    background:var(--white);\n    font-size:12.5px;\n    font-weight:600;\n    color:var(--ink-soft);\n    cursor:pointer;\n    transition:border-color .12s ease, background .12s ease, color .12s ease;\n  }\n  .hra-toggle.active{ border-color:var(--green); background:var(--green-pale); color:var(--green-deep); }\n\n  .hra-field{ margin-bottom:14px; }\n  .hra-field label{ display:block; font-size:12.5px; font-weight:600; color:var(--ink); margin-bottom:6px; }\n  .hra-field .hint{ font-weight:400; color:var(--ink-soft); font-size:11px; margin-left:4px; }\n  .hra-input-wrap{ position:relative; }\n  .hra-input-wrap .prefix{\n    position:absolute; left:12px; top:50%; transform:translateY(-50%);\n    font-family:var(--font-mono); font-size:14px; color:var(--ink-soft);\n  }\n  .hra-card input[type=number]{\n    width:100%;\n    padding:10px 12px 10px 28px;\n    border:1.5px solid var(--line);\n    border-radius:9px;\n    background:var(--white);\n    font-family:var(--font-mono);\n    font-size:14px;\n    color:var(--ink);\n  }\n  .hra-card input[type=number]:focus{ outline:none; border-color:var(--green); }\n  .hra-card select{\n    width:100%;\n    padding:10px 12px;\n    border:1.5px solid var(--line);\n    border-radius:9px;\n    background:var(--white);\n    font-family:var(--font-body);\n    font-size:13.5px;\n    color:var(--ink);\n    cursor:pointer;\n  }\n  .hra-card select:focus{ outline:none; border-color:var(--green); }\n\n  .hra-grid2{ display:grid; grid-template-columns:1fr 1fr; gap:12px; }\n\n  .hra-result{\n    background:var(--white);\n    border:1.5px solid var(--green);\n    border-radius:12px;\n    padding:18px 20px;\n  }\n  .hra-result.new-regime{ border-color:var(--saffron-deep); }\n  .hra-result-headline{ display:flex; justify-content:space-between; align-items:baseline; margin-bottom:4px; }\n  .hra-result-label{ font-size:12.5px; color:var(--ink-soft); font-weight:600; }\n  .hra-result-amt{ font-family:var(--font-mono); font-size:26px; font-weight:700; color:var(--green-deep); }\n  .hra-result.new-regime .hra-result-amt{ color:var(--saffron-deep); }\n  .hra-result-note{ font-size:11.5px; color:var(--ink-soft); margin-top:2px; }\n\n  .hra-breakdown{ margin-top:14px; border-top:1px dashed var(--line); padding-top:12px; }\n  .hra-bd-row{ display:flex; justify-content:space-between; align-items:center; padding:6px 0; font-size:12.5px; }\n  .hra-bd-row .name{ color:var(--ink-soft); }\n  .hra-bd-row .val{ font-family:var(--font-mono); font-weight:600; color:var(--ink); }\n  .hra-bd-row.binding{ background:var(--green-pale); margin:0 -8px; padding:6px 8px; border-radius:7px; }\n  .hra-bd-row.binding .name, .hra-bd-row.binding .val{ color:var(--green-deep); }\n  .hra-bd-tag{ font-size:9.5px; font-weight:700; letter-spacing:.04em; text-transform:uppercase; background:var(--green); color:var(--white); padding:2px 6px; border-radius:5px; margin-left:6px; }\n\n  .hra-banner{\n    background:var(--navy-pale);\n    border:1.5px solid #B9C6E6;\n    border-radius:12px;\n    padding:12px 14px;\n    display:flex; gap:10px; align-items:flex-start;\n    font-size:12px; color:var(--ink); line-height:1.5;\n    margin-top:16px;\n  }\n  .hra-banner strong{ color:var(--navy); }\n\n  .hra-footnote{\n    font-size:11px;\n    color:var(--ink-soft);\n    text-align:center;\n    padding:16px 26px 22px;\n    line-height:1.6;\n    border-top:1px solid var(--line);\n    margin-top:4px;\n  }\n\n  @media (max-width:420px){ .hra-grid2{ grid-template-columns:1fr; } }\n<\/style>\n\n<div class=\"hra-card\">\n\n  <div class=\"hra-header\">\n    <div class=\"hra-eyebrow\">Section 10(13A) \u00b7 Rule 2A<\/div>\n    <h2 class=\"hra-title\">HRA Exemption Calculator<\/h2>\n    <div class=\"hra-sub\">Covers <strong>FY 2025-26<\/strong> (4-metro rule) and <strong>FY 2026-27<\/strong> (new 8-metro rule, from 1 April 2026). Old regime vs new regime, compared instantly.<\/div>\n  <\/div>\n\n  <div class=\"hra-body\">\n\n    <div class=\"hra-section\">\n      <div class=\"hra-section-label\">Financial Year<\/div>\n      <div class=\"hra-toggle-row\" id=\"fyToggle\">\n        <div class=\"hra-toggle active\" data-fy=\"2526\">FY 2025-26 <span style=\"display:block;font-weight:400;font-size:10.5px;\">4 metros \u00b7 ITR due Jul 2026<\/span><\/div>\n        <div class=\"hra-toggle\" data-fy=\"2627\">FY 2026-27 <span style=\"display:block;font-weight:400;font-size:10.5px;\">8 metros \u00b7 from 1 Apr 2026<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\">\n      <div class=\"hra-section-label\">Tax Regime<\/div>\n      <div class=\"hra-toggle-row\" id=\"regimeToggle\">\n        <div class=\"hra-toggle active\" data-regime=\"old\">Old Regime <span style=\"display:block;font-weight:400;font-size:10.5px;\">HRA exempt<\/span><\/div>\n        <div class=\"hra-toggle\" data-regime=\"new\">New Regime <span style=\"display:block;font-weight:400;font-size:10.5px;\">HRA fully taxable<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\">\n      <div class=\"hra-section-label\">Input Period<\/div>\n      <div class=\"hra-toggle-row\" id=\"periodToggle\">\n        <div class=\"hra-toggle active\" data-period=\"monthly\">Monthly<\/div>\n        <div class=\"hra-toggle\" data-period=\"annual\">Annual<\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\">\n      <div class=\"hra-grid2\">\n        <div class=\"hra-field\">\n          <label>Basic Salary<\/label>\n          <div class=\"hra-input-wrap\"><span class=\"prefix\">\u20b9<\/span><input type=\"number\" id=\"basic\" value=\"50000\" min=\"0\" step=\"1000\"><\/div>\n        <\/div>\n        <div class=\"hra-field\">\n          <label>Dearness Allowance (DA) <span class=\"hint\">0 if none<\/span><\/label>\n          <div class=\"hra-input-wrap\"><span class=\"prefix\">\u20b9<\/span><input type=\"number\" id=\"da\" value=\"0\" min=\"0\" step=\"1000\"><\/div>\n        <\/div>\n        <div class=\"hra-field\">\n          <label>HRA Received<\/label>\n          <div class=\"hra-input-wrap\"><span class=\"prefix\">\u20b9<\/span><input type=\"number\" id=\"hra\" value=\"20000\" min=\"0\" step=\"1000\"><\/div>\n        <\/div>\n        <div class=\"hra-field\">\n          <label>Rent Paid<\/label>\n          <div class=\"hra-input-wrap\"><span class=\"prefix\">\u20b9<\/span><input type=\"number\" id=\"rent\" value=\"18000\" min=\"0\" step=\"1000\"><\/div>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\">\n      <div class=\"hra-field\">\n        <label>City of Residence<\/label>\n        <select id=\"city\">\n          <optgroup label=\"Metro in both FY25-26 and FY26-27 (50%)\">\n            <option>Delhi<\/option><option>Mumbai<\/option><option>Kolkata<\/option><option>Chennai<\/option>\n          <\/optgroup>\n          <optgroup label=\"Metro only from FY26-27 (40% \u2192 50%)\">\n            <option>Bengaluru<\/option><option>Hyderabad<\/option><option>Pune<\/option><option>Ahmedabad<\/option>\n          <\/optgroup>\n          <optgroup label=\"Non-metro (40% in both years)\">\n            <option selected=\"\">Other City<\/option>\n          <\/optgroup>\n        <\/select>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\">\n      <div class=\"hra-field\">\n        <label>Your marginal tax slab <span class=\"hint\">for the tax-saved estimate below<\/span><\/label>\n        <select id=\"slab\">\n          <option value=\"0\">0% (below taxable income)<\/option>\n          <option value=\"5\">5%<\/option>\n          <option value=\"20\">20%<\/option>\n          <option value=\"30\" selected=\"\">30%<\/option>\n        <\/select>\n      <\/div>\n    <\/div>\n\n    <div class=\"hra-section\" id=\"resultBox\"><\/div>\n\n  <\/div>\n\n  <div class=\"hra-footnote\">Based on Section 10(13A) read with Rule 2A (Income-tax Act, 1961, applicable for FY 2025-26) and the corresponding Income-tax Act, 2025 framework for FY 2026-27. This is an indicative estimate \u2014 confirm your final figures with your employer&#8217;s payroll team or a Chartered Accountant, especially for FY 2026-27 city classifications.<\/div>\n\n<\/div>\n\n<script>\n(function(){\n  const metros4 = ['Delhi','Mumbai','Kolkata','Chennai'];\n  const metros8 = metros4.concat(['Bengaluru','Hyderabad','Pune','Ahmedabad']);\n\n  let state = { fy:'2526', regime:'old', period:'monthly' };\n\n  function wireToggle(containerId, key, cb){\n    const container = document.getElementById(containerId);\n    container.querySelectorAll('.hra-toggle').forEach(el=>{\n      el.addEventListener('click', ()=>{\n        container.querySelectorAll('.hra-toggle').forEach(x=>x.classList.remove('active'));\n        el.classList.add('active');\n        state[key] = el.dataset[key === 'fy' ? 'fy' : key === 'regime' ? 'regime' : 'period'];\n        cb();\n      });\n    });\n  }\n\n  function fmt(n){\n    n = Math.round(n);\n    return '\u20b9' + n.toLocaleString('en-IN');\n  }\n\n  function calculate(){\n    const basicIn = parseFloat(document.getElementById('basic').value) || 0;\n    const daIn = parseFloat(document.getElementById('da').value) || 0;\n    const hraIn = parseFloat(document.getElementById('hra').value) || 0;\n    const rentIn = parseFloat(document.getElementById('rent').value) || 0;\n    const mult = state.period === 'monthly' ? 12 : 1;\n\n    const basic = basicIn * mult;\n    const da = daIn * mult;\n    const hraReceived = hraIn * mult;\n    const rentPaid = rentIn * mult;\n\n    const city = document.getElementById('city').value;\n    const metroList = state.fy === '2526' ? metros4 : metros8;\n    const isMetro = metroList.includes(city);\n    const pct = isMetro ? 50 : 40;\n\n    const salary = basic + da;\n    const condA = hraReceived;\n    const condB = salary * (pct\/100);\n    const condC = Math.max(0, rentPaid - salary * 0.10);\n\n    const box = document.getElementById('resultBox');\n\n    if(state.regime === 'new'){\n      box.innerHTML = `\n        <div class=\"hra-result new-regime\">\n          <div class=\"hra-result-headline\">\n            <span class=\"hra-result-label\">HRA exempt (new regime)<\/span>\n            <span class=\"hra-result-amt\">\u20b90<\/span>\n          <\/div>\n          <div class=\"hra-result-note\">Full HRA of ${fmt(hraReceived)}\/yr is taxable under the new regime, regardless of rent or city.<\/div>\n        <\/div>\n        <div class=\"hra-banner\"><strong>Tip:<\/strong> HRA exemption only applies under the old regime. Switch the toggle above to see what you'd save there instead.<\/div>\n      `;\n      return;\n    }\n\n    const exempt = Math.max(0, Math.min(condA, condB, condC));\n    const taxableHRA = Math.max(0, hraReceived - exempt);\n    const slab = parseFloat(document.getElementById('slab').value) || 0;\n    const cessRate = slab > 0 ? slab * 1.04 : 0;\n    const taxSaved = exempt * (cessRate\/100);\n\n    const conditions = [\n      {name:'A \u2014 Actual HRA received', val: condA},\n      {name:`B \u2014 ${pct}% of salary (${isMetro ? 'metro' : 'non-metro'}, ${city})`, val: condB},\n      {name:'C \u2014 Rent minus 10% of salary', val: condC}\n    ];\n    const minVal = Math.min(condA, condB, condC);\n\n    box.innerHTML = `\n      <div class=\"hra-result\">\n        <div class=\"hra-result-headline\">\n          <span class=\"hra-result-label\">HRA exempt (annual)<\/span>\n          <span class=\"hra-result-amt\">${fmt(exempt)}<\/span>\n        <\/div>\n        <div class=\"hra-result-note\">Taxable HRA: ${fmt(taxableHRA)}\/yr \u00b7 Estimated tax saved at ${slab}% slab: ${fmt(taxSaved)}\/yr<\/div>\n        <div class=\"hra-breakdown\">\n          ${conditions.map(c => `\n            <div class=\"hra-bd-row ${c.val === minVal ? 'binding' : ''}\">\n              <span class=\"name\">${c.name}${c.val === minVal ? '<span class=\"hra-bd-tag\">Lowest<\/span>' : ''}<\/span>\n              <span class=\"val\">${fmt(c.val)}<\/span>\n            <\/div>\n          `).join('')}\n        <\/div>\n      <\/div>\n      ${state.fy === '2627' && ['Bengaluru','Hyderabad','Pune','Ahmedabad'].includes(city) ? `<div class=\"hra-banner\"><strong>New for FY 2026-27:<\/strong> ${city} now qualifies for the 50% metro rate under the new rule. For FY 2025-26 filings this city is still non-metro (40%).<\/div>` : ''}\n    `;\n  }\n\n  wireToggle('fyToggle', 'fy', calculate);\n  wireToggle('regimeToggle', 'regime', calculate);\n  wireToggle('periodToggle', 'period', calculate);\n  ['basic','da','hra','rent','city','slab'].forEach(id=>{\n    document.getElementById(id).addEventListener('input', calculate);\n    document.getElementById(id).addEventListener('change', calculate);\n  });\n\n  calculate();\n})();\n<\/script>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"791\" height=\"1024\" src=\"https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/hra-calculator-screenshot-791x1024.jpg\" alt=\"HRA calculator Delhi metro showing Rs. 1,68,000 yearly exemption\" class=\"wp-image-1923\" srcset=\"https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/hra-calculator-screenshot-791x1024.jpg 791w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/hra-calculator-screenshot-232x300.jpg 232w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/hra-calculator-screenshot-768x994.jpg 768w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/hra-calculator-screenshot.jpg 850w\" sizes=\"auto, (max-width: 791px) 100vw, 791px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Last updated: 16 July 2026 \u00b7 Reviewed by [CA Name], Chartered Accountant \u00b7 11 min read<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use this free <strong>HRA calculator<\/strong> to work out your exact House Rent Allowance tax exemption under Section 10(13A) \/ Rule 2A \u2014 now updated for the notified 8-city metro classification that took effect from FY 2026-27. As an <strong>HRA exemption calculator<\/strong>, it also compares old regime vs new regime instantly so you can see which one actually saves you more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><code>[CALCULATOR WIDGET STAYS HERE \u2014 inputs unchanged: Financial Year toggle, Regime toggle, Basic Salary, DA, HRA Received, Rent Paid, City dropdown]<\/code><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Quick Answer: What&#8217;s Changed for FY 2026-27?<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>From 1 April 2026, four more cities \u2014 Bengaluru, Hyderabad, Pune, and Ahmedabad \u2014 qualify for the higher 50% HRA exemption cap, up from 40% earlier.<\/strong> This is the <strong>8 city HRA rule<\/strong>, and it comes from Rule 279 of the Income-tax Rules, 2026, notified by the CBDT via Notification No. G.S.R. 198(E) on 20 March 2026 and in force since 1 April 2026, under the new Income-tax Act, 2025. This isn&#8217;t a proposal still under discussion \u2014 it&#8217;s final and already governing FY 2026-27 payroll. <strong>If you&#8217;re filing your FY 2025-26 return (due July 2026), this doesn&#8217;t apply yet<\/strong> \u2014 the old 4-metro rule (Delhi, Mumbai, Kolkata, Chennai) governs that return. The new 8-city rule only affects salary and rent paid <em>from April 2026 onward<\/em>, i.e., your FY 2026-27 return.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What Is HRA Exemption?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">House Rent Allowance (HRA) is the part of your salary your employer pays to help cover rent \u2014 and Indian tax law lets you exclude a portion of it from taxable income if you actually live in rented accommodation. It&#8217;s one of the largest legitimate deductions available to salaried employees, often worth \u20b950,000 to \u20b94+ lakh a year depending on your salary and city.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption sits under <strong>Section 10(13A)<\/strong> read with <strong>Rule 2A<\/strong> of the Income-tax Rules \u2014 but there&#8217;s a nuance worth knowing: the Income-tax Act, 1961 was replaced by the <strong>Income-tax Act, 2025<\/strong>, effective 1 April 2026. Under the new Act, exempt incomes have moved out of the standalone &#8220;Section 10&#8221; of the 1961 Act and into <strong>Schedule II of the Income-tax Act, 2025<\/strong>. In practice this changes almost nothing about <em>how much<\/em> you can claim \u2014 the formula and city classifications are preserved \u2014 but it does change <em>which law you cite<\/em>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Filing FY 2025-26 (AY 2026-27) by July 2026?<\/strong> Use Section 10(13A) of the Income-tax Act, 1961 \u2014 this is what still governs that year.<\/li>\n\n\n\n<li><strong>Earning HRA from April 2026 onward (FY 2026-27)?<\/strong> That income falls under the Income-tax Act, 2025 framework (Schedule II), where the metro-city expansion also applies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\u26a0\ufe0f <strong>HRA exemption is available only under the old tax regime.<\/strong> Under the <strong>HRA new tax regime<\/strong> treatment, your entire HRA is fully taxable, regardless of which city you live in. Always compare both regimes before filing (see the comparison table further down).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">The HRA Calculation Formula (Rule 2A \/ Rule 279) \u2014 Least of Three<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is the <strong>HRA calculation formula<\/strong> the exemption is built on. Your exempt HRA is the <strong>lowest<\/strong> of these three amounts:<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>Condition A = Actual HRA received from employer\nCondition B = 50% \u00d7 (Basic + DA)   \u2192 metro cities\n            = 40% \u00d7 (Basic + DA)   \u2192 non-metro cities\nCondition C = Rent Paid \u2212 10% \u00d7 (Basic + DA)\n\nHRA Exempt = MIN (Condition A, Condition B, Condition C)\n<\/code><\/pre>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Salary&#8221; here means <strong>Basic Salary + Dearness Allowance (DA) that forms part of retirement benefits + any turnover-linked commission<\/strong>. It excludes HRA itself, special allowances, bonuses, or reimbursements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Anyone without HRA in their salary structure<\/strong> \u2014 freelancers, self-employed individuals, or employees whose CTC doesn&#8217;t include an HRA component \u2014 can still claim rent relief under <strong>Section 80GG<\/strong>, capped at the lowest of \u20b95,000\/month (\u20b960,000\/year), 25% of total income, or rent paid minus 10% of income. It&#8217;s a different, smaller benefit than Section 10(13A), and it requires filing a signed <strong>Form 10BA<\/strong> declaration by your ITR due date to claim it \u2014 a step people often miss.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Worked Example 1 \u2014 Mumbai (Existing Metro, Unaffected by the New Rule)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mr. Arjun Sharma, Senior Engineer, Mumbai \u2014 FY 2025-26<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Component<\/th><th>Monthly<\/th><th>Annual<\/th><\/tr><\/thead><tbody><tr><td>Basic Salary<\/td><td>\u20b960,000<\/td><td>\u20b97,20,000<\/td><\/tr><tr><td>DA<\/td><td>\u20b90<\/td><td>\u20b90<\/td><\/tr><tr><td>HRA Received<\/td><td>\u20b924,000<\/td><td>\u20b92,88,000<\/td><\/tr><tr><td>Rent Paid<\/td><td>\u20b922,000<\/td><td>\u20b92,64,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure style=\"margin-top:20px;margin-bottom:20px\" class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Condition<\/th><th>Calculation<\/th><th>Amount<\/th><\/tr><\/thead><tbody><tr><td>A \u2014 Actual HRA received<\/td><td>\u2014<\/td><td>\u20b92,88,000<\/td><\/tr><tr><td>B \u2014 50% of salary (Mumbai = metro)<\/td><td>50% \u00d7 \u20b97,20,000<\/td><td>\u20b93,60,000<\/td><\/tr><tr><td>C \u2014 Rent \u2212 10% of salary<\/td><td>\u20b92,64,000 \u2212 \u20b972,000<\/td><td>\u20b91,92,000<\/td><\/tr><tr><td><strong>HRA Exempt (lowest of A, B, C)<\/strong><\/td><td><\/td><td><strong>\u20b91,92,000<\/strong><\/td><\/tr><tr><td>Taxable HRA<\/td><td>\u20b92,88,000 \u2212 \u20b91,92,000<\/td><td>\u20b996,000<\/td><\/tr><tr><td>Approx. tax saved (30% slab + 4% cess, on the exempt amount)<\/td><td>\u20b91,92,000 \u00d7 31.2%<\/td><td><strong>\u2248 \u20b959,900<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Worked Example 2 \u2014 Bengaluru, Before vs After the New Rule (FY 2025-26 vs FY 2026-27)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is where the 8-city change actually matters. Use it to see whether the rule benefits <em>your<\/em> numbers \u2014 it doesn&#8217;t help everyone equally, because Condition C (the rent-linked cap) sometimes binds regardless of the city&#8217;s percentage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Example: Basic \u20b980,000\/month, HRA \u20b945,000\/month, Rent \u20b945,000\/month, Bengaluru<\/strong><\/p>\n\n\n\n<figure style=\"margin-top:20px;margin-bottom:20px\" class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Condition<\/th><th>FY 2025-26 (Bengaluru = non-metro, 40%)<\/th><th>FY 2026-27 (Bengaluru = metro, 50%)<\/th><\/tr><\/thead><tbody><tr><td>A \u2014 Actual HRA received (annual)<\/td><td>\u20b95,40,000<\/td><td>\u20b95,40,000<\/td><\/tr><tr><td>B \u2014 % of salary (annual salary \u20b99,60,000)<\/td><td>40% = \u20b93,84,000<\/td><td>50% = \u20b94,80,000<\/td><\/tr><tr><td>C \u2014 Rent \u2212 10% of salary<\/td><td>\u20b95,40,000 \u2212 \u20b996,000 = \u20b94,44,000<\/td><td>\u20b94,44,000<\/td><\/tr><tr><td><strong>HRA Exempt (lowest)<\/strong><\/td><td><strong>\u20b93,84,000<\/strong><\/td><td><strong>\u20b94,44,000<\/strong><\/td><\/tr><tr><td><strong>Extra exemption from the new rule<\/strong><\/td><td><\/td><td><strong>\u20b960,000<\/strong><\/td><\/tr><tr><td><strong>Approx. extra tax saved<\/strong> (30% slab + cess)<\/td><td><\/td><td><strong>\u2248 \u20b918,720\/year<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The takeaway:<\/strong> the new rule helps most when Condition B was your binding constraint (i.e., you receive relatively high HRA relative to rent). If your rent is modest compared to your HRA, Condition C may already be your limiting factor \u2014 in which case moving from 40% to 50% changes nothing. Run your own numbers in the calculator above rather than assuming the upgrade automatically means more savings.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">HRA Metro Cities List 2026 \u2014 What Changes and When<\/h2>\n\n\n\n<figure style=\"margin-top:20px;margin-bottom:20px\" class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>City<\/th><th>FY 2025-26 rate<\/th><th>FY 2026-27 rate (from 1 Apr 2026)<\/th><\/tr><\/thead><tbody><tr><td>Delhi<\/td><td>50%<\/td><td>50% (no change)<\/td><\/tr><tr><td>Mumbai<\/td><td>50%<\/td><td>50% (no change)<\/td><\/tr><tr><td>Kolkata<\/td><td>50%<\/td><td>50% (no change)<\/td><\/tr><tr><td>Chennai<\/td><td>50%<\/td><td>50% (no change)<\/td><\/tr><tr><td>Bengaluru<\/td><td>40%<\/td><td><strong>50%<\/strong> \u2191<\/td><\/tr><tr><td>Hyderabad<\/td><td>40%<\/td><td><strong>50%<\/strong> \u2191<\/td><\/tr><tr><td>Pune<\/td><td>40%<\/td><td><strong>50%<\/strong> \u2191<\/td><\/tr><tr><td>Ahmedabad<\/td><td>40%<\/td><td><strong>50%<\/strong> \u2191<\/td><\/tr><tr><td>All other cities (Gurgaon, Noida, Jaipur, Surat, Lucknow, Indore, Chandigarh, Kochi, etc.)<\/td><td>40%<\/td><td>40% (no change)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A note on the fine print:<\/strong> Gurgaon and Noida are part of the National Capital Region but are <em>not<\/em> on the official 8-city list \u2014 most employers apply the Delhi-NCR metro rate to them by administrative practice, but this isn&#8217;t guaranteed. If your salary structure treats Gurgaon\/Noida as non-metro, confirm with your payroll\/HR before assuming otherwise. This is genuinely a grey area \u2014 we&#8217;d rather tell you that than paper over it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the first change to India&#8217;s HRA metro classification in over four decades. It comes from Rule 279 of the Income-tax Rules, 2026, and reflects the rise of Bengaluru, Hyderabad, Pune, and Ahmedabad as major salaried-employment and rental-cost centres. Unlike some other provisions that were still in draft as of early 2026, this one is settled: the CBDT notified the final Income-tax Rules, 2026 on 20 March 2026, and they have been in force since 1 April 2026. If your FY 2026-27 payslip still shows the old 40% cap for one of the four newly added cities, that&#8217;s a payroll lag on your employer&#8217;s end, not an open legal question \u2014 flag it with HR.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Old Regime vs New Regime: Does HRA Even Matter to You?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HRA exemption <strong>only exists under the old tax regime<\/strong> \u2014 this is the single biggest thing to understand about <strong>HRA and the new tax regime<\/strong>. Before you calculate anything, work out which regime actually saves you more \u2014 for many salaried employees earning under ~\u20b915 lakh with modest deductions, the new regime&#8217;s flat lower slabs plus the Section 87A rebate (which makes income up to \u20b912 lakh effectively tax-free under the new regime) already win, HRA or not. You can compare both regimes side by side in our <a href=\"https:\/\/mybharatportal.com\/tools\/income-tax-calculator\/\">income tax calculator<\/a>.<\/p>\n\n\n\n<figure style=\"margin-top:20px;margin-bottom:20px\" class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th>Old Regime<\/th><th>New Regime<\/th><\/tr><\/thead><tbody><tr><td>HRA exemption (Sec 10(13A))<\/td><td>\u2705 Available<\/td><td>\u274c Not available \u2014 fully taxable<\/td><\/tr><tr><td>Standard deduction<\/td><td>\u20b950,000<\/td><td>\u20b975,000<\/td><\/tr><tr><td>Section 80C, 80D, home loan interest<\/td><td>\u2705 Available<\/td><td>\u274c Not available<\/td><\/tr><tr><td>Best suited for<\/td><td>High rent + other deductions (80C, home loan, medical insurance)<\/td><td>Few\/no deductions, simpler filing<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Rule of thumb:<\/strong> if your HRA exemption plus 80C\/80D\/home-loan deductions comfortably exceed \u20b93\u20134 lakh a year, the old regime is usually still worth it. Below that, run both scenarios \u2014 our calculator&#8217;s regime toggle does this instantly.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Documents You Need to Claim HRA<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You don&#8217;t submit these with your ITR, but your employer will ask for them before year-end to process TDS correctly, and you must be able to produce them if the Income Tax Department asks.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rent receipts<\/strong> for every month you&#8217;re claiming \u2014 name, address, amount, period, and landlord&#8217;s signature. Missing even one month&#8217;s receipt typically forfeits that month&#8217;s exemption.<\/li>\n\n\n\n<li><strong>Landlord&#8217;s PAN<\/strong> \u2014 mandatory if your annual rent exceeds \u20b91,00,000.<\/li>\n\n\n\n<li><strong>Form 60<\/strong> from your landlord if they don&#8217;t have a PAN, submitted to your employer (and the Income Tax Department if asked).<\/li>\n\n\n\n<li><strong>Rent agreement and bank transfer records<\/strong> \u2014 not always mandatory, but strongly recommended as supporting evidence, especially for rent paid to relatives.<\/li>\n\n\n\n<li><strong>Form 10BA<\/strong> \u2014 only if you&#8217;re claiming under Section 80GG instead of Section 10(13A) (i.e., you have no HRA component in your salary).<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">5 Ways to Maximise Your HRA Exemption (Legally)<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">#<\/th><th>Strategy<\/th><th>Who it helps most<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td>Structure your CTC to maximise the HRA component relative to special allowances (negotiate this at offer\/appraisal time)<\/td><td>Anyone with salary-structure flexibility<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td>Pay rent to parents who own the property \u2014 they declare it as rental income, you claim the exemption<\/td><td>Employees living with parents<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td>Keep rent receipts for every single month without gaps<\/td><td>Everyone<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td>If the landlord has no PAN, collect Form 60 rather than skip documentation<\/td><td>Renting from individuals without PAN<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td>If you own a home in one city but rent in another for work, you can claim <strong>both<\/strong> HRA exemption and home loan interest deduction (Section 24(b))<\/td><td>Employees relocated for work who still hold a home loan elsewhere<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n<style>.kt-accordion-id609_054a90-8f .kt-accordion-inner-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:10px;}.kt-accordion-id609_054a90-8f .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid 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.kt-blocks-accordion-icon-trigger:before{background:#eeeeee;}.kt-accordion-id609_054a90-8f .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{color:#ffffff;background:#BE530B;border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}.kt-accordion-id609_054a90-8f:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id609_054a90-8f:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#ffffff;}.kt-accordion-id609_054a90-8f:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger{background:#ffffff;}.kt-accordion-id609_054a90-8f:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id609_054a90-8f:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#BE530B;}@media all and (max-width: 1024px){.kt-accordion-id609_054a90-8f .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}}@media all and (max-width: 1024px){.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:1px solid #f2f2f2;border-right:1px solid #f2f2f2;border-bottom:1px solid #f2f2f2;border-left:1px solid #f2f2f2;}}@media all and (max-width: 1024px){.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id609_054a90-8f .kt-blocks-accordion-header:focus-visible{border-top:1px solid #878787;border-right:1px solid #878787;border-bottom:1px solid #878787;border-left:1px solid #878787;}}@media all and (max-width: 1024px){.kt-accordion-id609_054a90-8f .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}}@media all and (max-width: 767px){.kt-accordion-id609_054a90-8f .kt-accordion-inner-wrap{display:block;}.kt-accordion-id609_054a90-8f .kt-accordion-inner-wrap .kt-accordion-pane:not(:first-child){margin-top:10px;}.kt-accordion-id609_054a90-8f .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:1px solid #f2f2f2;border-right:1px solid #f2f2f2;border-bottom:1px solid #f2f2f2;border-left:1px solid #f2f2f2;}.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id609_054a90-8f .kt-blocks-accordion-header:focus-visible{border-top:1px solid #878787;border-right:1px solid #878787;border-bottom:1px solid #878787;border-left:1px solid #878787;}.kt-accordion-id609_054a90-8f .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id609_054a90-8f > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}}<\/style>\n<div class=\"wp-block-kadence-accordion alignnone\"><div class=\"kt-accordion-wrap kt-accordion-id609_054a90-8f kt-accordion-has-8-panes kt-active-pane-0 kt-accordion-block kt-pane-header-alignment-left kt-accodion-icon-style-basic kt-accodion-icon-side-right\" style=\"max-width:none\"><div class=\"kt-accordion-inner-wrap\" data-allow-multiple-open=\"false\" data-start-open=\"0\">\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-1 kt-pane609_0a7386-46\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q1: <strong>Is HRA exemption available under the new tax regime?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">No. HRA exemption under Section 10(13A) applies only if you file under the old tax regime. Under the new regime, your full HRA is added to taxable income regardless of rent paid or city.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-2 kt-pane609_e2402d-48\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q2: <strong>Which cities count as metro cities for HRA in FY 2026-27?<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Eight cities: Delhi, Mumbai, Kolkata, Chennai (unchanged), plus Bengaluru, Hyderabad, Pune, and Ahmedabad (newly added, effective 1 April 2026 under the notified Income-tax Rules, 2026). All other cities remain at the 40% non-metro rate.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-3 kt-pane609_7ca1e3-84\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q3: <strong>Does the new 8-city rule apply to my FY 2025-26 ITR filed in July 2026?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">No. FY 2025-26 income is still governed by the original 4-metro rule. The 8-city expansion applies only to income earned from 1 April 2026 onward (FY 2026-27), filed as your next year&#8217;s return.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-4 kt-pane609_37a100-da\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q4: <strong>Is the 8-city HRA rule still a draft, or is it final?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">It&#8217;s final. The CBDT notified the final Income-tax Rules, 2026 on 20 March 2026 (Notification No. G.S.R. 198(E)), and they have been in effect since 1 April 2026. It&#8217;s safe to rely on for FY 2026-27 planning.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-5 kt-pane609_919c79-c9\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q4: <strong>Can I claim HRA if I pay rent to my parents?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Yes, provided your parents own the property, you have genuine rent receipts and (ideally) a bank transfer trail, and your parents declare the rent as taxable rental income in their own return.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-6 kt-pane609_362de2-2d\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q5: <strong>Can I claim HRA and home loan interest deduction in the same year?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Yes, if you rent accommodation in one city (e.g., for work) while owning a home \u2014 with an outstanding loan \u2014 in another city or that you can&#8217;t occupy for a valid reason.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-7 kt-pane609_d91575-22\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q6: <strong>Is landlord PAN compulsory for HRA claims?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Only if your annual rent exceeds \u20b91,00,000. Below that threshold, rent receipts alone are generally sufficient, though keeping a bank transfer record is good practice regardless.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-8 kt-pane609_b75fe9-5a\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Q7: <strong>Where else can I verify my HRA calculation?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">The Income Tax Department&#8217;s e-filing portal (incometax.gov.in) also hosts an official HRA calculator under its &#8220;Quick Links&#8221; section \u2014 useful as a cross-check against this or any third-party tool.<\/p>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Related Guides<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">What Is HRA Exemption? Complete Beginner&#8217;s Guide<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">HRA Calculation Formula \u2014 Rule 2A \/ Rule 279 Explained with Examples<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">HRA vs Rent-Free Accommodation: Which Saves More Tax?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">How to Claim HRA in Your ITR \u2014 Step by Step<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">Metro vs Non-Metro HRA Rules 2026 \u2014 Full 8-City Guide<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">Section 80GG: Rent Deduction When You Don&#8217;t Receive HRA<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/claude.ai\/chat\/67651f82-3970-4a93-8da1-9d0754a73ff2#\" target=\"_blank\" rel=\"noopener\">Old vs New Tax Regime \u2014 Which Should You Choose?<\/a><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" style=\"margin-top:20px;margin-bottom:20px\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Sources:<\/strong> Income-tax Act, 2025 (Government of India, in force from 1 April 2026); Income-tax Rules, 2026, notified by the CBDT via Notification No. G.S.R. 198(E) dated 20 March 2026 (Rule 279 \u2014 metro city classification for HRA), in force from 1 April 2026; prior Income-tax Act, 1961, Section 10(13A) and Rule 2A; Income Tax Department e-filing portal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This calculator and article are for general guidance only and do not constitute tax advice. Confirm your specific position with a Chartered Accountant or your employer&#8217;s payroll team before making filing decisions, particularly for FY 2026-27 planning.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u00a9 2026 MY Bharat \u00b7 All calculations are indicative only. Consult a CA for personalised tax advice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HRA Calculator \u2014 FY 2025-26 &amp; FY 2026-27 (Notified 8-Metro-City Rule) Section 10(13A) \u00b7 Rule 2A HRA Exemption Calculator Covers FY 2025-26 (4-metro rule) and FY 2026-27 (new 8-metro rule, from 1 April 2026). Old regime vs new regime, compared instantly. Financial Year FY 2025-26 4 metros \u00b7 ITR due Jul 2026 FY 2026-27 8&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"hide","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"class_list":["post-609","page","type-page","status-publish","hentry"],"acf":[],"taxonomy_info":[],"featured_image_src_large":false,"author_info":{"display_name":"Sufyan","author_link":"https:\/\/mybharatportal.com\/tools\/author\/sufyan\/"},"comment_info":0,"_links":{"self":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/comments?post=609"}],"version-history":[{"count":4,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/609\/revisions"}],"predecessor-version":[{"id":1936,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/609\/revisions\/1936"}],"wp:attachment":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/media?parent=609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}