Question 1

How is HRA exemption calculated?

Accepted Answer

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic for metro cities or 40% for non-metro cities.

Question 2

Which cities are considered metro for HRA?

Accepted Answer

For HRA purposes, Delhi, Mumbai, Chennai, and Kolkata are classified as metro cities. All other cities including Bangalore, Hyderabad, and Pune are non-metro.

Question 3

Can I claim HRA if I own a house?

Accepted Answer

Yes, you can claim HRA even if you own a house in a different city. You need to actually pay rent and have rent receipts as proof.

Question 4

Is HRA exemption available under new regime?

Accepted Answer

No, HRA exemption is only available under the old tax regime. Under the new regime, you get lower tax rates but cannot claim HRA exemption.

Question 5

What documents do I need for HRA exemption?

Accepted Answer

You need rent receipts, landlord PAN (if rent > ₹1 lakh/year), and rent agreement. Some employers accept a declaration during investment proof submission.

Question 6

Can I claim HRA if my spouse owns the house?

Accepted Answer

Yes, you can pay rent to your spouse and claim HRA exemption, provided your spouse declares the rental income in their tax return.

Question 7

What if I don't get HRA in my salary?

Accepted Answer

If HRA is not part of your salary, you can claim deduction under Section 80GG up to ₹60,000 per year for rent paid, subject to conditions.

Question 8

How to maximize HRA exemption?

Accepted Answer

To maximize HRA: ensure rent paid is at least 10% above basic, live in a metro city if possible, and ensure your basic salary is appropriately structured.

HRA Exemption Calculator AY 2025-26

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