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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.

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

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. 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 50% Cities for FY 2026-27HRA in Old vs New Tax RegimeCan You Claim HRA When Paying Rent to Parents?

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.

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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