HRA 50% Slab Extended to Bengaluru, Pune, Hyderabad and Ahmedabad from 1 April 2026: What Salaried Employees Need to Know
From 1 April 2026, alongside the Income-tax Act, 2025 coming into force, the CBDT has extended the 50% HRA exemption ceiling to Bengaluru, Pune, Hyderabad and Ahmedabad, joining Mumbai, Delhi, Kolkata and Chennai. The change applies only under the old tax regime and benefits salaried employees whose HRA computation is actually constrained by the city-percentage limb of the least-of-three formula.
CA Priya Sharma
@ca_priya
CA
FCA | Indirect Tax Specialist | GST Litigation | Mumbai | 14 years in practice. Faculty at ICAI Western Region.