How is HRA exemption calculated, and can I claim it in the new tax regime?

Bottom line: HRA exemption is the least of three amounts, and it is available only under the old regime — not the new regime.

1. The three-way test
Exempt HRA = least of (a) actual HRA received; (b) rent paid minus 10% of salary; (c) 50% of salary in a metro (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere. Here "salary" means basic + dearness allowance forming part of retirement benefits + commission at a fixed percentage of turnover.

2. New regime
The HRA exemption under Section 10(13A) is not allowed under the default new regime. You must opt for the old regime to claim it.

3. Proof
Keep rent receipts, and if annual rent exceeds ₹1,00,000, report the landlord's PAN.

Work out your exempt amount with our HRA Exemption Calculator.