HRA Exemption in Gurgaon (Gurugram)
Gurgaon follows the 40% HRA rule for FY 2026-27. See a worked example and the three-rule breakdown that decides your tax-free HRA.
City Rule
40% of Basic+DA
Annual Exemption
₹2.78 L
Annual Taxable HRA
₹33,600
Limiting Rule
40% of basic salary
In Gurgaon, ₹2,78,400 of HRA is exempt; ₹33,600 stays taxable
₹58,000
₹26,000
₹30,000
40%
Three-Rule Comparison (Annual)
| Rule | Annual Amount |
|---|---|
| Actual HRA received | ₹3.12 L |
| 40% of Basic + DA lowest: applies | ₹2.78 L |
| Rent − 10% of Basic + DA | ₹2.90 L |
₹2.78 L
₹33,600
40% of basic salary
In Gurgaon, the exemption is the lowest of three caps: ₹2,78,400
Despite high corporate rents on Golf Course Road and in DLF, Gurugram remains a 40% non-metro city for HRA, it is not part of the eight-city 50% list.
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. Gurgaon is a non-metro city, so the second-rule cap is 40% 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 lowest of ₹3,12,000 received, ₹2,78,400 by the 40% rule, and ₹2,90,400 by the rent rule
- Actual HRA received from your employer
- 40% of Basic + DA: the non-metro cap for Gurgaon
- Rent paid − 10% of Basic + DA
In Gurgaon, the new regime taxes the whole ₹3,12,000 HRA: the exemption is old-regime only
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.