HRA Exemption Rules for Kolkata
| City Type | HRA % of Basic + DA | Example Cities |
|---|---|---|
| Metro Cities | 50% | Delhi, Mumbai, Kolkata, Chennai |
| Non-Metro Cities | 40% | Bangalore, Hyderabad, Pune, Ahmedabad, etc. |
* Kolkata is classified as a Metro city — the 50% rule applies. HRA exemption is only available under the Old Tax Regime.
Frequently Asked Questions
The exempt amount is the minimum of three tests: (A) Actual HRA received, (B) 50% of Basic + DA (since Kolkata is a metro city), and (C) Rent paid − 10% of Basic + DA. Use the calculator above to compute all three automatically.
Yes. If your monthly rent exceeds ₹3,000, you must submit rent receipts to your employer. If annual rent exceeds ₹1,00,000, your landlord's PAN is mandatory. Without PAN, TDS at 30% applies on rent paid.
Yes — you can pay rent to parents and claim HRA exemption. Ensure a proper rent agreement is in place and the rent is credited to your parent's bank account. Your parent must declare this rent as income in their ITR.