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HRA Rule 279

HRA in Old vs New Tax Regime

Understand why HRA exemption is generally relevant under the old regime and how to include it in a full old-versus-new tax comparison.

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

Can HRA exemption be claimed in the new tax regime?

HRA exemption is generally available when computing salary income under the old regime and is generally not available under the default new regime. Compare the full tax result because HRA alone does not determine the better regime.

Worked example

First calculate eligible HRA under Rule 279, then enter that benefit with other deductions and income in a complete old-versus-new regime calculator.

What to check

  • Do not compare regimes using HRA alone.
  • Use the exemption only where legally available.
  • Verify payroll declarations and final return computation.

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 50% Cities for FY 2026-27Can You Claim HRA When Paying Rent to Parents?

FAQs

Can HRA exemption be claimed in the new tax regime?

HRA exemption is generally available when computing salary income under the old regime and is generally not available under the default new regime. Compare the full tax result because HRA alone does not determine the better regime.

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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