The Economic Times

Good news for taxpayers in old tax regime: Higher HRA benefits extended to these new cities in Budget 2026

Taxpayers in Bengaluru, Hyderabad, Pune, and Ahmedabad can soon benefit from increased house rent allowance tax relief. The government proposes extending the 50% HRA exemption to these cities under the old tax regime. This change, effective April 1, 2026, aims to provide significant savings for salaried individuals.