Updated June 2026

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

Worked Example for Gurgaon

Basic (Monthly)

₹58,000

HRA Received

₹26,000

Rent Paid

₹30,000

City Rule

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

Tax-Exempt HRA (lowest)

₹2.78 L

Taxable HRA

₹33,600

Limiting Rule

40% of basic salary

Use the full HRA calculator with your own numbers

How HRA Exemption Works in Gurgaon

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 Three Rules

Actual HRA received from your employer
40% of Basic + DA: the non-metro cap for Gurgaon
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.

Frequently Asked Questions

Is Gurgaon a metro city for HRA in FY 2026-27?

No. Gurgaon is treated as a non-metro city for HRA, so the 40% rule applies: your second-rule cap is 40% of Basic + DA. Even though the 50% bracket was widened to eight cities in 2026, Gurgaon is not on that list.

How much HRA exemption can I claim in Gurgaon?

For the worked example below (₹58,000 basic, ₹30,000 rent, ₹26,000 HRA per month), the annual tax-exempt HRA in Gurgaon is ₹2.78 L, with ₹33,600 remaining taxable. Your own figure depends on your salary and rent: use the full HRA calculator for an exact number.

What is the HRA rule for Gurgaon: 40% or 50%?

Gurgaon uses the 40% rule. HRA exemption is the minimum of three amounts: (1) actual HRA received, (2) 40% of Basic + DA, and (3) rent paid minus 10% of Basic + DA.

Can I claim HRA exemption in Gurgaon under the new tax regime?

No. HRA exemption under Section 10(13A) is available only under the old tax regime, regardless of city. If you opt for the new regime, your entire HRA is taxable. From FY 2026-27 you must also disclose your relationship with the landlord when claiming HRA.

What documents do I need to claim HRA in Gurgaon?

Rent receipts are mandatory if annual rent exceeds ₹1 lakh, and you also need the landlord's PAN above that threshold. Keep a rent agreement and bank transfer proof as supporting evidence, especially if you pay rent to a relative.