The Economic Times

Higher HRA, bigger tax-free perks: How draft Income-Tax Rules 2026 could boost your take-home pay

Budget 2026 introduces significant perquisite rule changes, lowering taxable housing valuations and increasing tax-free limits for education, meals, and gifts. While motor car perquisite values rise for employer-owned vehicles, employee-owned cars see a decrease in taxable value. These adjustments aim to boost employee take-home pay by reducing taxable income components.