Big HRA Relief for Bengaluru, Pune, Hyderabad: Govt Plans 50% Tax Exemption Expansion

• Government plans to expand 50% HRA tax exemption to Bengaluru, Pune, Hyderabad, and Ahmedabad.
• Currently, only Mumbai, Delhi, Kolkata, and Chennai qualify for the higher 50% HRA exemption cap.
• The proposal reflects rising housing costs in major technology and commercial hubs, updating 1962 rules.
• The change could make the old tax regime more relevant for high-earning employees in these cities.
• The proposal is currently a draft and awaits final government notification to take effect.