Metro: Mumbai, Delhi, Kolkata, Chennai. All others are non-metro.

HRA Tax Exemption

HRA Exemption for Kolkata Employees

💡 Kolkata is one of the four metro cities — 50% of basic salary HRA rule applies.

Kolkata is one of the four official metro cities for HRA purposes under Section 10(13A). The other three are Mumbai, Delhi, and Kolkata (Chennai). Metro classification gives employees a higher HRA exemption ceiling of 50% of basic salary.

HRA exemption is only available under the old tax regime. Under the new regime, all HRA received is fully taxable. For Kolkata employees with significant rent, compare both regimes carefully.

HRA Exemption Formula for Kolkata

HRA Exemption = Minimum of:
1. Actual HRA received
2. Rent paid − 10% of Basic
3. 50% of Basic (Kolkata — metro)
⚠️ HRA exemption only under old tax regime. Rules for FY 2025-26.

Example Calculation

📋 Kolkata HRA — Common Scenarios
Basic ₹30KHRA ₹15K, Rent ₹18K → Exemption: ₹15,000/month
Basic ₹50KHRA ₹25K, Rent ₹30K → Exemption: ₹25,000/month
Basic ₹80KHRA ₹40K, Rent ₹45K → Exemption: ₹40,000/month = ₹4.8L/year

Frequently Asked Questions

Kolkata is a metro city for HRA exemption. The four metro cities are Mumbai, Delhi, Kolkata, and Chennai. Kolkata employees get HRA exemption up to 50% of basic salary.

HRA exemption in Kolkata = minimum of (actual HRA received), (rent minus 10% of basic), and (50% of basic salary). For ₹40,000 basic with ₹20,000 HRA and ₹25,000 rent: exemption = min(₹20,000, ₹21,000, ₹20,000) = ₹20,000/month = ₹2.4 lakh/year.

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.