Non-metro HRA uses a 40% of basic-salary-plus-DA cap (vs 50% for the four official metros). This applies to every Indian city other than Mumbai, Delhi, Chennai, and Kolkata - including major cities like Bengaluru, Hyderabad, Pune, Ahmedabad, Kochi, Jaipur, Lucknow, and Chandigarh. The actual exemption is the minimum of three statutory rules (the tool shows all three).
When to use this
Use to calculate HRA exemption for living + working in: Bengaluru (Whitefield / HSR / Koramangala), Hyderabad (Gachibowli / HiTec City / Madhapur), Pune (Hinjewadi / Magarpatta / Kharadi), and any other non-metro Indian city. Filing ITR-1, ITR-2, or computing your TDS / advance-tax impact.
Frequently Asked Questions
Why is Bengaluru a non-metro for HRA?
The Income Tax Act defines 'metro' as only the four cities explicitly named in Section 10(13A): Mumbai, Delhi, Chennai, Kolkata. Bengaluru wasn't in the original 1961 act and never added since. Despite Bengaluru's high cost of living, it's legally a non-metro for HRA exemption purposes.
Is there any way to get the 50% metro cap for non-metro cities?
No - the metro classification is fixed by statute. The only way to get the 50% cap is to actually live and rent in one of the four named metros. The 'actual HRA received' and 'rent paid - 10% basic' caps still apply on top of the 40%/50% rule.
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