# HRA & LTA Exemption Claims

> HRA is exempt up to the lowest of actual HRA, rent paid minus 10% of salary, and 50% of salary in eight cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad from FY 2026-27) or 40% elsewhere. LTA covers travel fare for you and your family for two journeys in a four-year block — the current block runs 2026 to 2029. Both are available only in the old regime.

Practice: Salary, RSU & ESOP Tax — https://www.industax.com/services/employee-tax/

The 2026 Rules expanded the 50% HRA cities, which raises the exemption for many employees in Bengaluru, Hyderabad, Pune and Ahmedabad — but only if the old regime still beats the new one for them.

LTA covers the fare of the shortest route for domestic travel only, not hotel stays or foreign trips, and an unused journey can be carried into the first year of the next block.

## Key facts

| Item | Detail |
| --- | --- |
| HRA 50% cities (FY 2026-27) | Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad |
| Landlord PAN | Needed if rent exceeds ₹1 lakh a year |
| LTA | 2 journeys in the 2026–2029 block, domestic fare only |
| Regime | Old regime only |

## Who needs this

- Employees in rented homes
- Employees travelling with family in India
- Employees comparing regimes

## What's included

- HRA and LTA computation
- Document checklist
- Employer submission guidance
- ITR filing

## Documents

- Rent agreement and receipts
- Landlord PAN
- Travel tickets and boarding passes

## Process

1. **Compute** — Exemptions worked out.
2. **Document** — Proofs organised for employer and ITR.
3. **Claim** — Through payroll or in the return.

## FAQs

### Can I claim HRA in my ITR if my employer didn't allow it?

Yes, in the old regime. If you have valid rent proofs, you can claim the exemption in your return even if it wasn't considered for TDS.

### Does LTA cover international travel?

No. LTA exemption is for travel within India. A trip abroad isn't covered even for the domestic leg in most cases.

### Can both spouses claim HRA for the same rent?

Each can claim HRA only for rent they actually pay. If rent is shared, each claims their share with supporting receipts.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/employee-tax/hra-lta-exemption
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.