HRA exemption rises to 50% for salaried employees in Hyderabad under new IT rules

The notification of new Income Tax Rules that travel into unit from April 1, 2026 brings bully quality for tax-payers from Hyderabad who volition beryllium eligible to assertion HRA exemption of up to 50% of the salary. Earlier, this exemption was capped astatine 40%. The Central Board of Direct Taxes notified the rules connected March 20, 2026.

Hyderabad, Bengaluru, Pune and Ahmedabad are among the caller municipality agglomerations that articulation Mumbai, Delhi, Kolkata and Chennai for this higher taxation break. Employees successful different places successful the state are allowed a 40% exemption.