Metro cities: Mumbai, Delhi, Kolkata, Chennai. All others are non-metro.
HRA Exemption for Delhi Employees
Delhi (including NCR areas within Delhi municipal limits) is classified as a metro city for HRA purposes under Section 10(13A). The four metro cities are Mumbai, Delhi, Kolkata, and Chennai.
HRA exemption is the minimum of three amounts: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary (metro). The exemption reduces your taxable income under the old tax regime.
Note: HRA exemption is only available under the old tax regime. Under the new regime, HRA received is fully taxable. If you claim HRA, compare both regimes carefully — high HRA exemption often makes the old regime more attractive in Delhi where rents are high.
HRA Exemption Formula for Delhi
1. Actual HRA received
2. Rent paid − 10% of Basic
3. 50% of Basic (Delhi — metro)
Example — Delhi employee
Basic: ₹40,000/month. HRA received: ₹20,000. Rent paid: ₹25,000.
1. HRA received: ₹20,000
2. Rent − 10% basic: ₹25,000 − ₹4,000 = ₹21,000
3. 50% of basic: ₹20,000
Exemption = Min(₹20,000, ₹21,000, ₹20,000) = ₹20,000/month
Example Calculation
Frequently Asked Questions
Yes — Delhi is one of the four metro cities for HRA exemption purposes under Section 10(13A). The four metros are Mumbai, Delhi, Kolkata, and Chennai. For Delhi employees, HRA exemption is calculated as 50% of basic salary (vs 40% for non-metro cities).
HRA exemption in Delhi is the minimum of: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary. For a ₹50,000 basic salary, maximum possible exemption is ₹25,000/month (50% of basic). Actual exemption depends on rent paid and HRA received.
No — only Delhi (within municipal limits) is classified as metro. Noida, Gurgaon, Faridabad, and Ghaziabad are non-metro for HRA purposes despite being part of NCR. Employees working in these cities get only 40% of basic salary as HRA exemption limit.
Related Calculators
Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.