HRA exemption in Delhi (New Delhi)
Metro city — the 50% limb applies. Work out exactly how much of your house rent allowance is tax-free in Delhi, with the city’s own rent levels, its tenancy rules and the proof your employer will ask for.
Rule 2A names Delhi, Mumbai, Kolkata and Chennai, and Delhi is one of them — so the third limb of your exemption is 50% of basic + DA, not 40%.
Worked example for Delhi
Take a Delhi employee on a basic salary of ₹55,000 a month with ₹25,000 of HRA, renting a 2 BHK at ₹33,500 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 (₹25,000/month) | ₹3,00,000 | Lowest — this is your exemption |
| 2. Rent paid (₹33,500/month) − 10% of basic | ₹3,36,000 | Higher |
| 3. 50% of basic + DA — Delhi is a metro | ₹3,30,000 | Higher |
| Tax-free HRA | ₹3,00,000 | Taxable HRA: ₹0 |
Being in a metro is worth real money here. Had the same salary and rent been in a non-metro city, the third limb would fall to ₹2,64,000 and the exemption to ₹2,64,000 — ₹36,000 less tax-free income a year.
Your numbers
The city type is pre-set to metro (50%) for Delhi. Change the salary and rent to yours — nothing is uploaded and nothing is stored on a server.
What rent looks like in Delhi
| Home | Indicative rent / month | Annual rent | Landlord PAN needed? |
|---|---|---|---|
| 1 BHK | ₹14,000 – ₹24,000 | ₹1,68,000 – ₹2,88,000 | Yes |
| 2 BHK | ₹22,000 – ₹45,000 | ₹2,64,000 – ₹5,40,000 | Yes |
| 3 BHK | ₹38,000 – ₹80,000 | ₹4,56,000 – ₹9,60,000 | Yes |
Indicative mainstream-locality ranges for Delhi (Saket, Dwarka, Lajpat Nagar, Vasant Kunj) — 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 ₹55,000 basic and ₹25,000 HRA, and moving only the rent through Delhi’s own bands, the binding limb changes:
| If you rent | Tax-free HRA / year | Taxable HRA | Capped by |
|---|---|---|---|
| 1 BHK at ₹19,000/month | ₹1,62,000 | ₹1,38,000 | rent − 10% of basic |
| 2 BHK at ₹33,500/month | ₹3,00,000 | ₹0 | your actual HRA |
| 3 BHK at ₹59,000/month | ₹3,00,000 | ₹0 | your actual HRA |
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 50% ceiling or your own HRA takes over. Renting above that point is a lifestyle decision, not a tax one.
Renting in Delhi: what is different here
Delhi's rental market splits sharply by pocket. South Delhi barsatis and builder floors in Saket, Malviya Nagar and Lajpat Nagar carry a premium for location rather than amenity; Dwarka and Rohini offer society flats with parking at materially lower rents; and the Vasant Kunj and Chanakyapuri belt is its own market driven by diplomatic and senior corporate tenancies. Turnover clusters around April and around the university session in July, when student demand tightens one-room lettings near North Campus.
Deposit convention. 2–3 months' rent, occasionally more for furnished flats in south Delhi.
Agreement and registration. Rent agreements in Delhi are overwhelmingly written as 11-month leave-and-licence deeds specifically to stay outside the registration requirement that kicks in at a 12-month term. Notarisation is common; registration is not, and employers do not ask for it.
Who is claiming HRA in Delhi
Delhi's salaried base is unusually weighted towards government, PSUs, law, media and consulting rather than a single private industry. Central government pay-commission structures set HRA by an official city classification — Delhi is an X-class city at 30% of basic pay — which is a completely separate scheme from the 50% figure in Rule 2A. The departmental slab decides what you are paid; Section 10(13A) decides what is exempt.
Professional tax. Delhi levies no professional tax at all, so nothing is deducted on that head from a Delhi payslip. See Delhi 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 Delhi
Is Delhi a metro city for HRA?
Delhi is a metro city for HRA purposes. It is one of the four cities named in Rule 2A — Delhi, Mumbai, Kolkata and Chennai — so the third limb of the exemption is 50% of basic plus DA.
How much HRA is tax-free in Delhi?
On the worked example on this page — basic ₹55,000 a month, HRA ₹25,000, rent ₹33,500 — the exempt amount is ₹3,00,000 a year and ₹0 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 Delhi 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 Delhi 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. Rent agreements in Delhi are overwhelmingly written as 11-month leave-and-licence deeds specifically to stay outside the registration requirement that kicks in at a 12-month term.
I am a central government employee in Delhi getting 30% HRA. Which percentage applies?
Both, for different purposes. The 30% is your entitlement under the pay-commission city classification — it decides the HRA amount credited to you. The 50% in Rule 2A is a ceiling in the exemption formula, applied to basic plus DA. Because your HRA at 30% is well below that ceiling, limb one or limb two will almost always decide your exemption, and the metro status will not bind.
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.