HRA check: old regime vs new
Sample: Ananya, 32, product analyst in Bengaluru. ₹18 lakh a year, pays rent, one car loan, one child in school.
₹2,88,000 HRA tax free, yet the new regime wins
The three HRA limits side by side. The lowest is tax free, but only in the old regime, so we check both.
The three HRA limits
HRA received₹3,60,000
Rent paid less 10% of basic₹2,88,000Tax free
50% of basic (Bengaluru)₹3,60,000
The lowest one is tax free: ₹2,88,000. The rest, ₹72,000, is taxed.
Tax for the year
To claim HRA you need
- Rent receipts or the rent agreement
- Landlord's PAN when rent is above ₹1 lakh a year
- Rent paid by bank or UPI, not cash
- Old regime only: the new regime gives no HRA exemption