Question 1

How is HRA exemption calculated?

Accepted Answer

The exemption is the least of: (a) actual HRA received, (b) rent paid minus 10% of basic, (c) 50% of basic (metro) or 40% (non-metro). This tool applies all three.

Question 2

Which cities count as metros for HRA?

Accepted Answer

Only Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Hyderabad and Pune are non-metro for HRA — a common surprise.

Question 3

Can I claim HRA and home loan?

Accepted Answer

Yes, if you live in a rented house and separately own a home you don't stay in (e.g., in another city, or let out). Both benefits stack.

Question 4

Do I need a rent agreement?

Accepted Answer

For rent above ₹1 lakh/year (~₹8,300/month), you must give your employer the landlord's PAN. Below that, receipts are enough.

Question 5

Is HRA available in the new regime?

Accepted Answer

No. HRA exemption only applies in the old tax regime.

HRA Exemption