Answer

1. F

   Facts

   HRA exemption is worked out separately for each period, using that period's salary, HRA received, rent paid and city. Delhi, Mumbai, Kolkata and Chennai use 50% of salary; other cities use 40%.

2. P

   Provisions and law

   • Sec 10(13A), Income-tax Act 1961 (now Sec 11 (Schedule III, Table Sl. No. 11))HRA exemption is the least of actual HRA, rent paid minus 10% of salary, and 50% or 40% of salary depending on the city.
   • Rule 2A, Income-tax Rules 1962 (now Rule 279, Income-tax Rules 2026)Sets the HRA exemption limits and the city percentages.
3. A

   Analysis

   For April to September in Bengaluru with basic of ₹50,000 a month, HRA ₹20,000 and rent ₹25,000, the exemption is the least of ₹1,20,000, ₹1,20,000 (rent minus 10% basic) and ₹1,20,000 (40%), so ₹1,20,000. Then compute October to March for Delhi with that salary and rent at 50%. Add the two. HRA exemption is only in the old regime.

4. C

   Conclusion

   1. 1Split the year by job and city.
   2. 2Note basic, HRA and rent for each period.
   3. 3Compute the three limits per period.
   4. 4Add the lower figure for each period.
   5. 5Claim only under the old regime.

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