HRA Rule 279
HRA Rule 279 Calculation
Calculate HRA exemption under Rule 279 using actual HRA, rent minus 10% of salary and the applicable 50% or 40% salary cap.
Last reviewed: 16 July 2026
Direct answer
How is HRA exemption calculated under Rule 279?
The estimated exemption is the lowest of actual HRA received, rent paid minus 10% of eligible salary, and 50% or 40% of eligible salary based on the specified city group. Negative rent-minus-salary results are treated as zero in the calculator.
Worked example
Salary Rs 50,000, HRA Rs 20,000 and rent Rs 25,000 in a 50% city produce limits of Rs 20,000, Rs 20,000 and Rs 25,000. Estimated monthly exemption is Rs 20,000.
What to check
- Use eligible salary components only.
- Apply the correct city cap.
- HRA exemption is generally an old-regime calculation.
How the calculator approaches it
- 1.Build eligible HRA salary from Basic, eligible DA and eligible fixed commission.
- 2.Calculate actual HRA, rent minus 10% of salary and the applicable 50% or 40% salary cap.
- 3.Use the lowest non-negative amount as the estimated exemption.
- 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
FAQs
How is HRA exemption calculated under Rule 279?
The estimated exemption is the lowest of actual HRA received, rent paid minus 10% of eligible salary, and 50% or 40% of eligible salary based on the specified city group. Negative rent-minus-salary results are treated as zero in the calculator.
Which calculator should I use for this question?
Use RupeeKit's HRA Exemption Calculator India and replace the example with your own current figures.
RupeeKit provides educational estimates only. This page is not personalised financial, investment, tax, legal or lending advice. Verify current rules, product documents and your own facts before acting.