HRA and 80C/80D gaps
Your HRA exemption, and how much deduction room you’re leaving unused, for FY 2026-27. These only help in the old regime.
Your HRA exemption is ₹2,10,000 a year
₹1,50,000 of your ₹3,60,000 HRA stays taxable. The limit here is rent minus 10% of salary. You also have ₹1,55,000 of unused 80C, 80D and NPS room, worth about ₹48,360 in tax in the old regime.
Metros for HRA: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
Deductions you’ve used this year
The three HRA limits
Each extra rupee of rent raises the exemption, until it reaches the next limit at ₹3,60,000.
Room left this year
Filling all of it saves about ₹48,360 in tax, at your 31.2% marginal rate.
How this is calculated
The HRA exemption is the smallest of three amounts, all for the year. “Salary” here means basic plus dearness allowance.
From FY 2026-27, the Income-tax Rules, 2026 treat eight cities as metros for HRA. Some sources still describe these rules as a draft; check the final notification before filing.
HRA, 80C, 80D and 80CCD(1B) are old-regime deductions. If the new regime is cheaper for you, filling these gaps saves nothing: compare with the Old vs new regime calculator.
A guide for planning, not tax advice.
Frequently asked questions
How is the HRA exemption calculated?
It is the lowest of three amounts: the HRA you receive, rent paid minus 10% of salary, and 50% of salary in a metro city or 40% elsewhere. Salary here means basic pay plus dearness allowance.
Which cities count as metros for HRA?
From FY 2026-27 the rules treat eight cities as metros: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
Can I claim HRA in the new tax regime?
No. The HRA exemption, 80C, 80D and 80CCD(1B) are available only in the old regime. If the new regime is cheaper for you, these deductions save nothing.
What is the 80C limit?
₹1.5 lakh a year in total across EPF, PPF, ELSS, life insurance premiums, home loan principal and children’s tuition fees. NPS under 80CCD(1B) gives up to ₹50,000 more on top.