HHRA exemption

HRA exemption is the minimum of three amounts: (1) actual HRA received annually, (2) 50% of basic salary for metro cities or 40% for non-metro, and (3) rent paid minus 10% of basic salary. You are exempt from paying tax on the lowest of these three values.

Only four cities are classified as metros for HRA purposes: Delhi, Mumbai, Kolkata, and Chennai. Bengaluru, Hyderabad, and Pune are treated as non-metro — the 40% rule applies there.

Yes. If annual rent exceeds ₹1,00,000, you must furnish the landlord's PAN on Form 12BB while submitting proof to your employer. Without PAN, your employer may not permit the exemption.

Yes — these are completely independent deductions. HRA exemption applies when you live in a rented house, and Section 24(b) deduction for home loan interest applies to your owned property (which could be in a different city).

No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime (Section 115BAC). Under the new regime, HRA is fully included in taxable salary.