How to Claim HRA or Rent Deduction in Your ITR (Even If Not in Form 16)

Step by step

1. 1

   Gather proofs

   Rent agreement, rent receipts or bank transfers, landlord's PAN if annual rent exceeds ₹1 lakh.

2. 2

   Compute the exemption

   Least of: actual HRA received; rent paid minus 10% of salary (basic + DA); 50% of salary in Delhi, Mumbai, Kolkata, Chennai (40% elsewhere).

3. 3

   Reduce salary in the ITR

   In the salary schedule, enter the HRA exemption under section 10(13A) — taxable salary reduces accordingly.

4. 4

   No HRA? Use 80GG

   File Form 10BA on the portal, then claim 80GG: least of ₹5,000 a month, 25% of adjusted total income, or rent minus 10% of adjusted total income.

5. 5

   Keep the evidence

   AIS may not show rent — notices ask for receipts and bank proof.

Which cities get 50%

For FY 2025-26 (AY 2026-27) the 50% limit applies to Delhi, Mumbai, Kolkata and Chennai. From Tax Year 2026-27 under the new Rules, Bengaluru, Hyderabad, Pune and Ahmedabad are added — eight cities in all. Jind, Rohtak, Hisar and Gurugram fall in the 40% category.

Quick example

Basic salary ₹6 lakh, HRA received ₹2.4 lakh, rent paid ₹2.16 lakh in Jind. Least of: ₹2.4 lakh; ₹2.16 lakh − ₹60,000 = ₹1.56 lakh; 40% × ₹6 lakh = ₹2.4 lakh → exemption ₹1.56 lakh.

Common mistakes

• Paying rent to a spouse — not accepted
• Claiming HRA and home-loan benefit on the same house without a genuine reason
• Cash rent with no trail

Frequently asked questions

Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.