The Economic Times

Will increased tax deduction for children hostel allowance, revised HRA be given to taxpayers in new income tax regime also? Know what draft income tax rules, 2026 say

New draft income tax rules suggest changes to house rent allowance and child hostel allowance benefits. Cities like Bengaluru and Pune may now qualify for higher HRA exemptions. The child hostel allowance limit could see a substantial increase. These proposed changes are open for public feedback.