New Income Tax Rules 2026: Higher HRA Exemption for 8 Major Cities, Fake Receipts End

• New Income Tax Rules (Income Tax Rules, 2026) effective April 1, 2026, impacting salaried employees.
• Higher House Rent Allowance (HRA) tax exemption for employees in Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad, and Bengaluru.
• HRA exemption determined by lowest of HRA received, actual rent paid minus 10% of salary, or 50%/40% of salary.
• Employees must disclose relationship with landlord in Form 124, especially for rent paid to relatives, to prevent fraudulent claims.
• Taxpayers advised to have a written rent agreement, pay rent via bank, and ensure landlords declare rental income in their ITR.