Your claim is not the rent paid or HRA received in isolation.
Your claim is not the rent paid or HRA received in isolation. Enter defined salary, HRA received, genuine rent and rented-house city for each stable period; the lowest of the three formula amounts is exempt and the remaining HRA is taxable.
This article uses the AY 2026–27 framework for income earned in FY 2025–26 under section 10(13A) of the Income-tax Act, 1961 read with Rule 2A. For this period, and in the current official departmental material reviewed on 1 August 2026, the 50% salary limb is restricted to Mumbai, Kolkata, Delhi and Chennai; all other locations use 40%. HRA exemption is ordinarily unavailable under the default new tax regime, so regime selection is a threshold eligibility question.
Sara’s HRA salary is ₹9,00,000, HRA is ₹3,60,000 and rent is ₹3,90,000 in Kolkata. The limbs are ₹3,60,000, ₹3,00,000 and ₹4,50,000. She can claim ₹3,00,000 and must include ₹60,000 as taxable HRA.
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Your claim is not the rent paid or HRA received in isolation. Enter defined salary, HRA received, genuine rent and rented-house city for each stable period; the lowest of the three formula amounts is exempt and the remaining HRA is taxable.
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