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HRA Rule 279

HRA 50% Cities for FY 2026-27

Check the FY 2026-27 specified city list for the 50% HRA salary cap and when the 40% cap applies under Rule 279.

Written and reviewed by RupeeKit Editorial TeamLast reviewed 16 July 2026Report a correction
Indian tenant organizing rent receipts, apartment keys and salary documents while reviewing an HRA exemption question
Indian tenant organizing rent receipts, apartment keys and salary documents while reviewing an HRA exemption question

Direct answer

Which cities use the 50% HRA salary cap for FY 2026-27?

The Rule 279 specified-city group used by RupeeKit includes Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Other Indian cities use the 40% salary cap in this least-of-three calculation.

Worked example

Select 50% for Bengaluru and 40% for Indore, then compare that cap with actual HRA and rent minus 10% of salary.

What to check

  • City percentage is only one of three limits.
  • Use the work/rented-residence facts for the relevant period.
  • Verify the notified rules before filing.

How the calculator approaches it

  1. 1.Build eligible HRA salary from Basic, eligible DA and eligible fixed commission.
  2. 2.Calculate actual HRA, rent minus 10% of salary and the applicable 50% or 40% salary cap.
  3. 3.Use the lowest non-negative amount as the estimated exemption.
  4. 4.Verify tax regime, city group and documents before filing.

Important limitation

This is an educational HRA estimate. Payroll periods, salary components, rent evidence and filing facts can change the claim; verify the current rules and your records.

Primary sources

Related questions

HRA Rule 279 CalculationHRA in Old vs New Tax RegimeCan You Claim HRA When Paying Rent to Parents?

FAQs

Which cities use the 50% HRA salary cap for FY 2026-27?

The Rule 279 specified-city group used by RupeeKit includes Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Other Indian cities use the 40% salary cap in this least-of-three calculation.

Which calculator should I use for this question?

Use RupeeKit's HRA Exemption Calculator India and replace the example with your own current figures.

Source, Methodology & Educational Disclaimer

RupeeKit explains personal-finance topics using the assumptions, examples, calculator logic, and cited sources shown on the page. Where a topic depends on tax, regulatory, government, lender, or product rules, readers should verify the latest position with the relevant official source before acting.

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