Can I claim HRA and a home loan at the same time?

Yes, if the facts support it. Typically you are renting where you work and repaying a loan on a property elsewhere, or one that is genuinely let out. Both claims must be true, not just convenient.

I forgot to declare rent to my employer. Is it lost?

No. You can claim the exemption directly when you file your return, even if your employer deducted tax without it. Keep the rent receipts and the bank transfers.

Does Bengaluru count as a metro?

Not for HRA. The rule names only Delhi, Mumbai, Kolkata and Chennai. Everywhere else uses the 40% figure, however expensive it has become.

HRA exemption calculator

House rent allowance is not exempt just because it appears on your payslip. The exemption is the smallest of three separate figures, and most people are limited by the one they never look at.

The three are: the HRA you actually received, your rent minus 10% of salary, and a flat percentage of salary that depends on whether your city counts as a metro.

Annual HRA exemption

₹2,04,000

Limited by your rent after the 10% cut. The taxable part of your HRA is ₹96,000.

Rule 1: HRA actually received: ₹3,00,000
Rule 2: rent paid less 10% of salary: ₹2,04,000
Rule 3: 50% of salary: ₹3,00,000
Exemption is the smallest of the three: ₹2,04,000
Taxable HRA: ₹96,000
Tax saved at 30%: ₹63,648

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How this is worked out

Salary for this rule means basic pay plus dearness allowance, not gross salary.
Rule 1 is simply the HRA on your payslip for the year.
Rule 2 is annual rent paid minus 10% of that salary figure.
Rule 3 is 50% of salary in Delhi, Mumbai, Kolkata and Chennai, and 40% everywhere else.
The exemption is whichever of the three is smallest.

What this does not cover

HRA exemption exists only under the old tax regime. Choosing the new regime gives it up entirely.
Rent above ₹1 lakh a year requires your landlord PAN in your declaration to your employer.
Paying rent to a parent is allowed, but the rent must genuinely be paid and the parent must declare it as income.
Bengaluru, Hyderabad, Pune and Ahmedabad are not metros for this rule, whatever else they are.

Questions people ask

Can I claim HRA and a home loan at the same time?: Yes, if the facts support it. Typically you are renting where you work and repaying a loan on a property elsewhere, or one that is genuinely let out. Both claims must be true, not just convenient.
I forgot to declare rent to my employer. Is it lost?: No. You can claim the exemption directly when you file your return, even if your employer deducted tax without it. Keep the rent receipts and the bank transfers.
Does Bengaluru count as a metro?: Not for HRA. The rule names only Delhi, Mumbai, Kolkata and Chennai. Everywhere else uses the 40% figure, however expensive it has become.

Where these figures come from

Rates and rules on this page were last checked against the source on 31 August 2026. Tax law changes; check the source before you rely on a number for a decision.

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