Rent receipts do not change the Rule 2A formula; they support the rent input.
Rent receipts do not change the Rule 2A formula; they support the rent input. Use receipts or a reliable payment trail matching the rental period, amount, landlord and property address, and report the landlord PAN to the employer where annual rent exceeds ₹1,00,000.
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.
Neha pays ₹24,000 monthly rent through bank transfer and shares the property with a roommate who reimburses ₹10,000. Her genuine rent cost is ₹14,000 a month, not ₹24,000. The HRA calculator should use ₹1,68,000 annual rent and retain the lease, receipt, transfers and reimbursement trail.
For the complete rules on this topic, see the core guide: HRA Exemption: Rules, Formula and Maximum Limit.
See the broader Income Tax & Salary knowledge hub for related rules and calculators on this topic.
Rent receipts do not change the Rule 2A formula; they support the rent input. Use receipts or a reliable payment trail matching the rental period, amount, landlord and property address, and report the landlord PAN to the employer where annual rent exceeds ₹1,00,000.
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