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Delhi · PracticalIncome-tax checklist for salaried employees working in Delhi NCR
Work in Gurugram, live in Rohini? Or work in Noida and rent in Delhi? Where you live affects HRA, and the new regime may make HRA irrelevant anyway. Here is a practical income-tax checklist for salaried employees across Delhi NCR.
Delhi NCR's salaried workforce spans Delhi, Gurugram (Haryana), Noida and Ghaziabad (UP) and Faridabad (Haryana). Tax rules are national, but a few NCR-specific points matter.
1. Choose your regime at the start of the year
Tell your employer which regime you want for TDS (you can change in the return if you have no business income). Compare using the income tax calculator. Under the new regime, salary up to ₹12.75 lakh is effectively tax-free in Tax Year 2026-27.
2. HRA: where you live matters
| You live in | HRA limb |
|---|---|
| Delhi (any area, including Rohini, Dwarka, Pitampura) | 50% of salary |
| Gurugram, Faridabad | 40% |
| Noida, Greater Noida, Ghaziabad | 40% |
Example: Rohit works in Gurugram but lives in a rented flat in Dwarka – he gets the 50% limb. His colleague living in Gurugram gets 40%. See HRA calculation.
3. No professional tax
Delhi, Haryana and UP do not levy professional tax on salaries, so the ₹2,500 deduction seen in other States does not apply.
4. Declarations in Form 124 (Tax Year 2026-27)
Submit rent receipts (with landlord PAN above ₹1 lakh), LTA proofs, 80C/80D investments (old regime), and home-loan certificates.
5. Employer NPS – a deduction in both regimes
If your employer offers NPS, the employer's contribution (up to 14% of basic for private employers under the new regime, as allowed) is deductible in both regimes – worth restructuring salary.
6. Home loans
- Self-occupied property: interest up to ₹2 lakh – old regime only.
- Let-out property in NCR: interest deductible against rent in both regimes; loss set-off against salary only in the old regime (up to ₹2 lakh). See joint home loan benefits.
7. Capital gains and ESOPs
- Many NCR tech employees hold foreign ESOPs/RSUs – these need ITR-2 and Schedule FA.
- Mutual fund and share sales: use the capital gains statement; LTCG on equity above ₹1.25 lakh is taxed at 12.5%.
8. Reconcile before filing
Download AIS and Form 26AS; match with Form 130/Form 16 and bank interest. Report all FD and savings interest. See Form 16 vs AIS vs 26AS.
Worked example
Example: Neha lives in a rented flat in Rohini (rent ₹30,000/month) and works in Noida. Salary ₹18,00,000 (basic ₹7,20,000, HRA ₹3,60,000). She invests ₹1,50,000 under Section 123 (80C) and pays ₹25,000 health insurance.
| New regime | Old regime | |
|---|---|---|
| Gross salary | ₹18,00,000 | ₹18,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| HRA exempt (least of ₹3,60,000; ₹2,88,000; ₹3,60,000 at 50% Delhi) | — | ₹2,88,000 |
| 80C + 80D | — | ₹1,75,000 |
| Taxable income | ₹17,25,000 | ₹12,87,000 |
| Tax incl. cess | ₹1,50,800 | ₹2,06,544 |
New regime: ₹20,000 + ₹40,000 + ₹60,000 + 20% of ₹1,25,000 = ₹1,45,000 + cess = ₹1,50,800. Old regime: ₹12,500 + ₹1,00,000 + 30% of ₹2,87,000 (₹86,100) = ₹1,98,600 + cess ₹7,944 = ₹2,06,544. The new regime saves about ₹55,700 even with the Delhi 50% HRA limb.
9. File on time
ITR due 31 July (non-audit). Verify within 30 days. Belated return till 31 December; revised return till 31 March.
Key takeaway
For NCR employees: choose the regime with real numbers, remember Gurugram and Noida are 40% cities, there is no professional tax, and reconcile AIS before filing. Our ITR filing team files returns for salaried employees across Delhi NCR, including those with ESOPs and capital gains.
Official references
Official sources to verify the current text, notifications and circulars:
- CBIC GST – CGST/IGST Acts, Rules, notifications and circulars ↗
- GST portal – returns, notices and advisories ↗
- GST Council – meeting recommendations ↗
- Income Tax Department – Acts, Rules, circulars and section mapping ↗
- Income-tax e-Filing portal ↗
- Department of Trade and Taxes, Govt of NCT of Delhi ↗
- FSSAI FoSCoS – food licences ↗
Frequently asked questions
Does living in Gurugram or Noida get 50% HRA?
No. Only Delhi among NCR cities is in the 50% list (along with Mumbai, Kolkata, Chennai, and from Tax Year 2026-27 Bengaluru, Hyderabad, Pune and Ahmedabad). Gurugram, Noida, Ghaziabad and Faridabad get 40%. The city of residence decides, not the office location.
Is professional tax deducted in Delhi NCR?
Delhi, Haryana and Uttar Pradesh do not levy professional tax on salaried employees, so there is usually no professional tax deduction for NCR employees.
Should I choose the new or old regime?
Compare both every year. For most employees with salary up to about ₹15–20 lakh and limited deductions, the new regime is cheaper; large HRA and home-loan interest claims may favour the old regime.
When is the ITR due for salaried employees?
31 July following the year for those without business income (and not requiring audit), unless extended.
Is cab reimbursement for night shifts taxable?
Transport provided by the employer for commuting may be a perquisite; tax treatment depends on the arrangement and the regime.
Can I claim HRA if my rent is paid to a Gurugram landlord but I live in Delhi?
HRA depends on where you live, not the landlord's address. If you live in Delhi, the 50% limb applies.
Do I need to file ITR if TDS is fully deducted?
Yes, if income exceeds the basic exemption limit.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.