Age does not create a higher HRA exemption.
Age does not create a higher HRA exemption. A senior citizen who remains a salaried employee and receives HRA uses the same Rule 2A formula; a pensioner who no longer receives employer HRA cannot use section 10(13A).
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.
A 63-year-old consultant is on payroll, earns HRA salary of ₹7,20,000, receives HRA of ₹2,40,000 and pays ₹2,70,000 rent in Chennai. The limbs are ₹2,40,000, ₹1,98,000 and ₹3,60,000. Exemption is ₹1,98,000—the same computation as for a younger employee.
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Age does not create a higher HRA exemption. A senior citizen who remains a salaried employee and receives HRA uses the same Rule 2A formula; a pensioner who no longer receives employer HRA cannot use section 10(13A).
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