Mumbai is a metro per the Income-tax Act — which means you get the 50% slab on HRA exemption. The calculator runs all three conditions (Schedule II of the Income-tax Act, 2025 — the rule you knew as Section 10(13A)) and shows you which one wins.
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Under Income Tax Section 10(13A), if you're salaried and pay rent for accommodation you live in, the lowest of these three is exempt from tax:
The "least of three" is the trick most people get wrong. Often the third condition (rent − 10% of basic) is the binding one — especially in Mumbai where rents are high relative to base salaries.
Yes — always has been. And from FY 2026-27 the metro list doubled under the Income-tax Act, 2025: Mumbai, Delhi, Kolkata, Chennai + Bengaluru, Hyderabad, Pune and Ahmedabad all get the 50% slab. One catch — the return you file for FY 2025-26 still uses the old 4-city rule, so pick the right year before you toggle.
This is a quirk of older tax law. The list hasn't been updated in decades. If you live in Mumbai, you benefit from the higher 50% slab.
Three things, in roughly this order of importance:
Rent receipts for every month of the year. Landlord's PAN if your annual rent exceeds ₹1 lakh. A rental agreement (not strictly required by IT, but helps if assessed).
If your landlord refuses to share PAN, you can submit a self-declaration — but if total rent crosses ₹1 lakh/year (almost certain in Mumbai), HR will flag it. Better to negotiate up front.
If your salary doesn't include HRA but you pay rent — you can still claim Section 80GG instead. Different rules, lower cap. Talk to Archita if you need to figure out which applies.