Estimate your exempt House Rent Allowance under Indian income tax rules.
Exempt HRA = minimum of: (1) actual HRA received, (2) rent paid − 10% of basic salary, (3) 50% of basic (metro) or 40% (non-metro).
Updated for FY 2026-27: Bengaluru, Hyderabad, Pune and Ahmedabad now count as metro (50% rate) alongside Delhi, Mumbai, Kolkata and Chennai. If you're filing for FY 2025-26 instead, these four cities still use the old 40% non-metro rate.
Illustrative estimate only — tax rules change frequently and vary by jurisdiction/circumstance. Verify with an accountant or official source before relying on this.
From FY 2026-27, eight cities qualify for the 50% metro rate: Delhi, Mumbai, Kolkata, Chennai (the original four), plus Bengaluru, Hyderabad, Pune and Ahmedabad, newly added from 1 April 2026. All other cities use the 40% non-metro rate. Note: FY 2025-26 returns (due July 2026) still use the old 4-city rule.
The exempt amount is the lowest of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic salary if you live in a metro city, or 40% if you live elsewhere.
Yes, typically. Employers usually require rent receipts (and a PAN copy from the landlord if annual rent exceeds ₹1,00,000) to allow the exemption in TDS calculations. Keep proof of rent payment.
Generally yes, as long as the arrangement is genuine, rent is actually paid (ideally via bank transfer), and the family member declares it as rental income. Paying rent to a spouse is usually not accepted.