WeVividWeVividCalculate HRA tax exemption based on salary, rent and city.
It's the lowest of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary, or (3) 50% of basic salary in a metro city (40% in a non-metro). Whichever of these three is smallest becomes your exempt amount.
For HRA purposes, Delhi, Mumbai, Chennai and Kolkata are treated as metro cities (50% of basic). All other cities use the non-metro rate (40% of basic).
No — HRA exemption is only available under the old tax regime. If you've opted for the new regime, your full HRA is taxable.