HRA Exemption in Delhi
Delhi follows the 50% HRA rule for FY 2026-27. See a worked example and the three-rule breakdown that decides your tax-free HRA.
City Rule
50% of Basic+DA
Annual Exemption
₹3.24 L
Annual Taxable HRA
₹0
Limiting Rule
Actual HRA received
Worked Example for Delhi
₹60,000
₹27,000
₹35,000
50%
Three-Rule Comparison (Annual)
| Rule | Annual Amount |
|---|---|
| Actual HRA received lowest: applies | ₹3.24 L |
| 50% of Basic + DA | ₹3.60 L |
| Rent − 10% of Basic + DA | ₹3.48 L |
₹3.24 L
₹0
Actual HRA received
How HRA Exemption Works in Delhi
As the national capital, Delhi has always been a 50% metro city for HRA: unlike the four cities added to the bracket only in 2026. Mid-range 2BHK rents here run ₹30,000–₹60,000 a month.
House Rent Allowance exemption under Section 10(13A) is the same formula everywhere: the only city-specific part is whether the second rule uses 50% or 40% of your Basic + DA. Delhi is on the 50% list for FY 2026-27, so the second-rule cap is half of your Basic + DA. Your tax-free HRA is the lowest of the three rules, so a higher percentage cap only helps if it is not already limited by your actual HRA or rent.
The Three Rules
- Actual HRA received from your employer
- 50% of Basic + DA: the metro cap for Delhi
- Rent paid − 10% of Basic + DA
Old vs New Regime
HRA exemption is available only under the old tax regime. If you opt for the new regime, your entire HRA is taxable, no matter which city you live in. From FY 2026-27 you must also disclose your relationship with the landlord when claiming HRA, and provide the landlord's PAN if annual rent exceeds ₹1 lakh.