Explanation
HRA (House Rent Allowance) exemption is available only under the old tax regime. The exemption is the LEAST of three amounts: (1) Actual HRA received from employer. (2) 50% of (Basic + DA) for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro. Under IT Rules 2026, four additional cities have been added to the 50% category. (3) Actual rent paid minus 10% of (Basic + DA). If rent paid > ₹1 lakh/year, landlord's PAN is required. Receipts should be kept. Under Section 80GG (§134), individuals NOT receiving HRA can still claim rent deduction. Verify on the income-tax portal before filing.