HRA Exemption for Two Houses in the Same Year
Reviewed by CA Nikhil Gupta · Last reviewed 5 August 2026
Updated 26 September 2026: the four-city HRA list on this page applies to AY 2026–27 (FY 2025–26) and earlier years. From Tax Year 2026-27, Rule 279 of the Income-tax Rules, 2026 extends the 50% rate to eight cities (Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru); the framework paragraph below now says so.
Two rented houses do not create two separate annual HRA exemptions.
Compute the claim period-wise using the rent, salary, HRA and city applicable to each occupied accommodation, and do not double count overlapping rent unless the facts show genuine residential use and actual cost borne.
Use the HRA Exemption Calculator — Tax Year 2026-27 to apply these points to your figures.
Legal or Computational Framework
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. From Tax Year 2026-27 (income earned on or after 1 April 2026, under the Income-tax Act, 2025) the city list changes: Rule 279 of the Income-tax Rules, 2026 extends the 50% limb to eight cities — Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru — while every other place stays at 40%. The four-city list on this page therefore applies only to FY 2025–26 and earlier years; the HRA Exemption Calculator lets you switch between the two tax years.
Worked Example
Delhi period: limbs are ₹1,20,000, ₹1,20,000 and ₹1,50,000, so exemption is ₹1,20,000. Jaipur period: limbs are ₹1,20,000, ₹90,000 and ₹1,20,000, so exemption is ₹90,000. Annual exemption is ₹2,10,000, not a single formula applied to combined rent.
What Generic Pages Miss
- Using the year-end city for all twelve months.
- Claiming both rents in full during an overlap without explaining occupation.
- Double counting HRA received from two employers.
- Ignoring rent-free transition months.
- Failing to retain move-out and move-in evidence.
Practical Documentation Checklist
- Both rent agreements
- Move-in/move-out records
- Period-wise rent receipts
- Transfer or job-change letter
- Salary and HRA from each employer
- Explanation for any overlapping rent
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.
Finin2min Summary
Two rented houses do not create two separate annual HRA exemptions. Compute the claim period-wise using the rent, salary, HRA and city applicable to each occupied accommodation, and do not double count overlapping rent unless the facts show genuine residential use and actual cost borne.
Frequently Asked Questions
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Income Tax
- Official starting point
- www.incometax.gov.in