HRA Exemption in Kolkata
Kolkata 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
₹1.82 L
Annual Taxable HRA
₹45,600
Limiting Rule
Rent paid minus 10% of salary
In Kolkata, ₹1,82,400 of HRA is exempt; ₹45,600 stays taxable
₹48,000
₹19,000
₹20,000
50%
Three-Rule Comparison (Annual)
| Rule | Annual Amount |
|---|---|
| Actual HRA received | ₹2.28 L |
| 50% of Basic + DA | ₹2.88 L |
| Rent − 10% of Basic + DA lowest: applies | ₹1.82 L |
₹1.82 L
₹45,600
Rent paid minus 10% of salary
In Kolkata, the exemption is the lowest of three caps: ₹1,82,400
Kolkata is an original 50% metro, but its relatively low rents (₹15,000–₹35,000 for a 2BHK) mean the rent-minus-10% rule often decides the exemption here.
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. Kolkata 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 lowest of ₹2,28,000 received, ₹2,88,000 by the 50% rule, and ₹1,82,400 by the rent rule
- Actual HRA received from your employer
- 50% of Basic + DA: the metro cap for Kolkata
- Rent paid − 10% of Basic + DA
In Kolkata, the new regime taxes the whole ₹2,28,000 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.