The Economic Times

HRA alone saves more income tax in old tax regime for many salaried taxpayers; why Budget 2026 should increase its limits and scope

The House Rent Allowance (HRA) continues to offer an advantage to the old tax regime, despite the new regime's lower tax liability in some scenarios. Budget 2026 should consider expanding the definition of metro cities and linking HRA limits to objective housing cost indicators to address regional disparities and inflation.