Old Tax Regime Back in Focus: New Draft Rules Boost HRA, Education Allowances

• Draft Income-tax Rules, 2026 suggest the old tax regime remains relevant, not fading away.
• New rules reduce compliance burden: 511 to 333 rules, 399 to 190 forms.
• HRA exemption expanded to include Bengaluru, Hyderabad, Pune, Ahmedabad for 50% benefit.
• Children's education allowance increases from Rs 100 to Rs 3,000, hostel allowance from Rs 300 to Rs 9,000.
• These revisions make the old regime more attractive, especially for salaried taxpayers with specific deductions.