HRA exemption in Bengaluru (Bangalore)
Non-metro city — the 40% limb applies. Work out exactly how much of your house rent allowance is tax-free in Bengaluru, with the city’s own rent levels, its tenancy rules and the proof your employer will ask for.
Rule 2A names only Delhi, Mumbai, Kolkata and Chennai. Whatever Bengaluru’s size, rents or metro rail, the third limb of your exemption is 40% of basic + DA. Ticking “metro” is the most common HRA error in India.
Worked example for Bengaluru
Take a Bengaluru employee on a basic salary of ₹60,000 a month with ₹30,000 of HRA, renting a 2 BHK at ₹37,000 a month — figures drawn from this city’s mainstream rental bands. Section 10(13A) exempts the least of three amounts:
| Limb under Rule 2A | Annual amount | Result |
|---|---|---|
| 1. Actual HRA received (₹30,000/month) | ₹3,60,000 | Higher |
| 2. Rent paid (₹37,000/month) − 10% of basic | ₹3,72,000 | Higher |
| 3. 40% of basic + DA — Bengaluru is non-metro | ₹2,88,000 | Lowest — this is your exemption |
| Tax-free HRA | ₹2,88,000 | Taxable HRA: ₹72,000 |
This is what the mistake costs. Someone in Bengaluru who ticks “metro” would compute the third limb as ₹3,60,000 instead of ₹2,88,000 and claim ₹3,60,000 instead of ₹2,88,000 — ₹72,000 of income wrongly treated as exempt. Payroll usually catches it in the February TDS true-up, and the whole shortfall is recovered from one month's salary.
Your numbers
The city type is pre-set to non-metro (40%) for Bengaluru. Change the salary and rent to yours — nothing is uploaded and nothing is stored on a server.
What rent looks like in Bengaluru
| Home | Indicative rent / month | Annual rent | Landlord PAN needed? |
|---|---|---|---|
| 1 BHK | ₹14,000 – ₹24,000 | ₹1,68,000 – ₹2,88,000 | Yes |
| 2 BHK | ₹24,000 – ₹50,000 | ₹2,88,000 – ₹6,00,000 | Yes |
| 3 BHK | ₹42,000 – ₹90,000 | ₹5,04,000 – ₹10,80,000 | Yes |
Indicative mainstream-locality ranges for Bengaluru (Koramangala, Whitefield, Indiranagar, Electronic City) — not a valuation, and premium addresses run well above them. The calculator uses whatever rent you actually pay.
How much rent do you need to use your whole HRA?
Keeping the same ₹60,000 basic and ₹30,000 HRA, and moving only the rent through Bengaluru’s own bands, the binding limb changes:
| If you rent | Tax-free HRA / year | Taxable HRA | Capped by |
|---|---|---|---|
| 1 BHK at ₹19,000/month | ₹1,56,000 | ₹2,04,000 | rent − 10% of basic |
| 2 BHK at ₹37,000/month | ₹2,88,000 | ₹72,000 | the 40% ceiling |
| 3 BHK at ₹66,000/month | ₹2,88,000 | ₹72,000 | the 40% ceiling |
At the bottom of the range your exemption is throttled by limb two — the 10% of basic that is deducted from your rent before anything is exempt. Higher up, the 40% ceiling takes over, and paying more rent stops buying you any further exemption. Renting above that point is a lifestyle decision, not a tax one.
Renting in Bengaluru: what is different here
Bengaluru's rental market is the most competitive in India and moves fastest. Koramangala, Indiranagar and HSR Layout command the highest rents for city-side living; Whitefield and Sarjapur Road serve the eastern tech belt with more supply and better value; Electronic City sits at the lower end. The deposit convention is the real shock — six to ten months is normal, occasionally more for independent houses, and it is not usually negotiable in a tight market.
Deposit convention. 6–10 months' rent — the highest deposit convention in India, and the single biggest cash-flow shock for anyone relocating here.
Agreement and registration. The Karnataka Rent Act framework applies, and 11-month agreements are universal. E-stamping through the state portal is widespread, which gives you a verifiable agreement without a registration visit.
Who is claiming HRA in Bengaluru
The largest concentration of IT services, product engineering, global capability centres and funded startups in the country. Almost all of them use national salary templates with HRA at 50% of basic. The result is that India's highest-paid non-metro workforce is systematically paid metro-rate HRA while capped at the 40% exemption limb — which is why this single misconception costs Bengaluru employees more in aggregate than any other HRA error in the country.
Professional tax. Karnataka professional tax is ₹200 a month above ₹25,000 monthly salary, and nil below it. See Karnataka professional tax for the full slab table — it does not change your HRA exemption, but it does change what reaches your bank account. Our in-hand salary calculator puts the two together if you want the figure that actually lands in your account.
Proof checklist before you claim
- Rent agreement in your name, covering the months you are claiming.
- Rent receipts for each month — generate all twelve at once, free.
- Landlord’s PAN once annual rent crosses ₹1,00,000 (₹8,333 a month), or a Form 60 declaration instead.
- Revenue stamp on receipts for cash payments above ₹5,000 a month.
- 2% TDS under Section 194-IB if you pay more than ₹50,000 a month — deducted once, in the last month of the tenancy.
- Bank transfers rather than cash wherever possible; a payment trail settles most employer queries on its own.
Questions people ask about HRA in Bengaluru
Is Bengaluru a metro city for HRA?
Bengaluru is not a metro city for HRA purposes. Rule 2A names only Delhi, Mumbai, Kolkata and Chennai, so the third limb is 40% of basic plus DA. Population, metro rail and cost of living make no difference — the list is fixed and has not been expanded.
How much HRA is tax-free in Bengaluru?
On the worked example on this page — basic ₹60,000 a month, HRA ₹30,000, rent ₹37,000 — the exempt amount is ₹2,88,000 a year and ₹72,000 of the HRA stays taxable. Your own figure depends on all three limbs; use the calculator above with your actual salary and rent.
Do I need my landlord's PAN?
Yes, once the annual rent exceeds ₹1,00,000 — about ₹8,333 a month. In Bengaluru that threshold is crossed by almost every letting, including 1 BHKs. If the landlord will not share a PAN, they must give a declaration in Form 60, and many employers reject the claim without one.
What proof does my employer want for a Bengaluru rent claim?
A rent agreement, rent receipts for the months claimed, and the landlord's PAN where annual rent crosses ₹1,00,000. Receipts for cash payments above ₹5,000 a month should carry a revenue stamp. The Karnataka Rent Act framework applies, and 11-month agreements are universal.
My ten-month deposit is enormous. Can I claim any of it as rent?
No. A refundable security deposit is not rent — it is your money held by the landlord and returned at the end of the tenancy, so nothing about it enters limb two. Only rent actually paid counts. This matters in Bengaluru more than anywhere else, because a ten-month deposit means a large sum leaves your account in the first month while contributing nothing at all to your HRA exemption.
Questions that apply everywhere — whether HRA survives in the new tax regime, paying rent to your parents, and which cities count as metros — are answered on the HRA by city guide.
Compare nearby cities
This page explains the law as it applies generally and uses illustrative figures; it is not tax advice for your specific situation. The rent ranges are indicative market observations, not valuations. Verify slab and threshold changes before filing.