HRA Exemption Rules FY 2025-26: Claim Up to ₹4 Lakh Tax-Free – ITR Disclosure Updates
For FY 2025-26 (AY 2026-27), HRA exemption under Section 10(13A) remains a top saver in the old regime (new regime excludes it). The formula is unchanged, but Budget 2025 mandates detailed ITR disclosures: salary breakup, rent proofs, and landlord PAN if annual rent > ₹1 lakh. Metro renters (Delhi, Mumbai, etc.) can exempt up to 50% of basic salary. Calculate yours with our HRA Exemption Calculator.
HRA Exemption Formula (Least of 3)
- Actual HRA received from employer
- 50% of (Basic + DA) in metros | 40% in non-metros
- Rent paid − 10% of (Basic + DA)
Example: Mumbai Salaried (₹12 Lakh Basic + DA)
HRA Received: ₹5.76L | Rent Paid: ₹7.2L → Exemption: ₹4.32L | Tax Saved (30% slab): ₹1.3 lakh.
New ITR Requirements (AY 2026-27)
Starting July 2026 filings: Submit rent agreement, receipts, and landlord PAN (or Form 12BB affidavit if no PAN). Non-compliance risks denial.
- Self-Employed Alternative: Section 80GG (up to ₹5,000/month, stricter caps).
- Combine with Others: 80C (₹1.5L) + 80D for total old regime savings up to ₹2.5L.
Pro Tip: File by Sept 15, 2026; keep digital proofs for e-filing ease. Estimate HRA savings →