TheBankTodayTheBankTodayTheBankToday
Notification Show More
Font ResizerAa
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Reading: 8 Cities Now Eligible for 50% HRA Tax Exemption
Share
Font ResizerAa
TheBankTodayTheBankToday
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Search
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Have an existing account? Sign In
Follow US

Home » Important

Home result
Important

8 Cities Now Eligible for 50% HRA Tax Exemption

Takendra Verma
Last updated: 02/04/2026 2:32 PM
Takendra Verma
Published: 02/04/2026
Share
SHARE

With the start of the new financial year on April 1, 2026, salaried taxpayers have received good news. The government has made an important change in the rules related to House Rent Allowance (HRA).

Contents
More Cities Added to the 50% HRA ListWhy This Change Was IntroducedExtra Benefits Under the Old Tax RegimeStricter Rules to Prevent Misuse

Under the Income Tax Rules, 2026, issued by the Central Board of Direct Taxes (CBDT), more cities have been included where employees can claim HRA exemption of up to 50% of their basic salary.

More Cities Added to the 50% HRA List

Earlier, only four metro cities—Delhi, Mumbai, Kolkata, and Chennai—allowed employees to claim HRA exemption up to 50% of their basic salary. In all other cities, the limit was 40%.

Now, the government has added four more cities to this list: Bengaluru, Hyderabad, Pune, and Ahmedabad.

This means employees living in these eight cities can now claim HRA exemption up to 50% of their basic salary. As a result, their taxable income will reduce and their take-home salary will increase.

Why This Change Was Introduced

Experts believe this decision was necessary because house rents have increased sharply in many cities. In places like Bengaluru and Pune, rents are now almost equal to those in older metro cities.

This change will help reduce the gap between actual rent costs and tax benefits. It will also leave more money in the hands of the middle class and may increase demand for rental housing in cities.

Extra Benefits Under the Old Tax Regime

Along with HRA changes, the government has also increased some other benefits for taxpayers who choose the old tax regime:

Children’s education and hostel allowance: The exemption limit has been increased.

Free meals at the workplace: Relief has been provided on meal coupons or free food given by employers.

Foreign travel and studies: Tax Collected at Source (TCS) on expenses for foreign travel or education has been reduced.

Stricter Rules to Prevent Misuse

Even though relief has been given, the government has also made rules stricter.

Technology will now be used to closely check HRA claims and prevent fake rent receipts.

To reduce speculation in futures and options (F&O), the Securities Transaction Tax (STT) has been increased by 150%.

You Might Also Like

This LIC Plan Offers Lifetime Insurance and Annual Income
Bank of Baroda Offers high returns
Rs 2.5 Lakh Cr Credit Scheme announced by Govt
Invest ₹2 lakh in Canara Bank 444 days FD (Know your earnings)
Bharat Coking Coal IPO launching Soon (Full Details)
Share This Article
Facebook Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Difference Between NEFT and RTGS

Get Banking Updates

Important banking and money updates, delivered without the clutter.
Thank you! Please check your inbox to confirm your subscription.
Popular Updates
SBI Asha Scholarship
SBI Asha Scholarship 2023: विद्यार्थियों को मिल रही 5 लाख की स्कॉलरशिप
31/07/2023
fd
RBI Changes FD Interest Rate Rules From October 1
22/09/2026
How to register YONO SBI
How to register YONO SBI in Just 5 minutes
11/05/2023
check balance from SBI ATM
How to check Balance from SBI ATM?
30/07/2023
How to check Balance in SBI
How to check Balance in SBI in 2023?
18/02/2023

Tags

  • Central Bank Of India
  • Pan Card
  • register mobile number
  • pan card new rule
  • Banking Service
  • HDFC
  • SBI Personal Loan
  • Net Banking
  • Activate Net Banking
  • What is Bank?

TheBankToday

TheBankToday publishes practical banking, personal-finance and financial-news explainers to help readers understand important updates and services.
Quick Links
  • About
  • Contact Us
  • Disclaimer
  • Join Us
  • T&C
  • Privacy Policy
  • Customize Interests
Important Links
  • Advertise With Us
  • Advertising Policy
  • Cookie Policy
  • Corrections Policy
  • Editorial Policy
  • Fact-Checking Policy
  • Grievance Redressal

Subscribe Us

Subscribe to our newsletter to get our newest articles instantly!

Thank you! Please check your inbox to confirm your subscription.
© 2026 TheBankToday. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?