Summary
Section 10(13A) read with Rule 279 of the Income-tax Rules 2026 grants the 50% HRA exemption cap to eight cities: Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, and Ahmedabad. Rule 279 took effect on 1 April 2026, adding the last four to a list that held only the original four since 1962. Every other Indian city, including Gurgaon and the rest of Delhi-NCR beyond Delhi itself, stays on the 40% cap. The exemption is the minimum of HRA received, rent paid minus 10% of basic salary, and that city cap percentage of basic salary.
Which financial year: the 8-city 50% list applies to FY 2026-27 returns. A belated or revised FY 2025-26 return still uses the old four-city list, so Bangalore, Hyderabad, Pune, and Ahmedabad are capped at 40% for that year.
The eight 50% metro cities
Rule 279 · FY 2026-27
Delhi · North
Delhi
- Typical 1BHK
- ₹16,000/mo
- Typical 2BHK
- ₹22,000/mo
Dwarka · Saket · Lajpat Nagar
Maharashtra · West
Mumbai
- Typical 1BHK
- ₹40,000/mo
- Typical 2BHK
- ₹60,000/mo
Bandra West · Andheri West · Powai
West Bengal · East
Kolkata
- Typical 1BHK
- ₹10,000/mo
- Typical 2BHK
- ₹18,000/mo
Salt Lake (Sector V) · New Town · Ballygunge
Tamil Nadu · South
Chennai
- Typical 1BHK
- ₹14,000/mo
- Typical 2BHK
- ₹25,000/mo
Anna Nagar · T Nagar · Velachery
Karnataka · South
Bangalore
- Typical 1BHK
- ₹18,000/mo
- Typical 2BHK
- ₹32,000/mo
Koramangala · Indiranagar · Whitefield
Maharashtra · West
Pune
- Typical 1BHK
- ₹18,000/mo
- Typical 2BHK
- ₹32,000/mo
Hinjewadi · Baner · Kharadi
Telangana · South
Hyderabad
- Typical 1BHK
- ₹15,000/mo
- Typical 2BHK
- ₹30,000/mo
Gachibowli · Kondapur · Hitech City
Gujarat · West
Ahmedabad
- Typical 1BHK
- ₹12,000/mo
- Typical 2BHK
- ₹20,000/mo
Satellite · Bodakdev · Vastrapur
Every other city — 40% HRA cap
Outside the Rule 279 list
Cities outside the eight above keep the 40% cap on the HRA-exempt portion. That includes Gurgaon, Noida, and the rest of Delhi-NCR beyond Delhi itself, along with every other Indian city. The receipt mechanics, the ₹1,00,000 landlord-PAN trigger, and the three-leg exemption test are identical; only the cap percentage differs.
The cap math, at a glance
Your HRA exemption under Section 10(13A) is the minimum of three numbers:
- HRA actually received from your employer
- Rent paid in the year minus 10% of basic salary
- 50% of basic salary if you live in one of the eight Rule 279 metros (Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad); 40% of basic salary everywhere else
Whichever of the three is smallest is the exemption you can claim. For an AI-friendly worked example for your city, follow any city card above.
Generate your rent receipt
12 monthly receipts with all 14 Section 10(13A) fields. ₹7 for one, ₹49 for a full year.
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