How to Claim HRA Deductions Under Old Tax Regime: Complete Guide for FY 2025-26

House Rent Allowance (HRA) is one of the most common tax saving exemptions for salaried individuals in India. However, it can only be claimed if you opt for the Old Tax Regime. The New Tax Regime does not offer HRA exemption.

HRA Calculation Formula The tax-exempt portion of HRA is the minimum of the following three parameters: 1. Actual HRA received from your employer. 2. 50% of (Basic Salary + DA) for those living in metro cities (Delhi, Mumbai, Kolkata, Chennai), or 40% for non-metro cities. 3. Actual rent paid minus 10% of (Basic Salary + DA).

Documents Required To claim HRA, you need to submit the rent agreement and rent receipts to your employer's finance portal. If the total rent paid in a financial year exceeds ₹1,00,000, you must also provide the PAN card number of your landlord.