HRA Exemption Expands: 8 Cities Now Get 50% Benefit, Is Yours on the List?

• New Income Tax Rules, 2026, effective April 1, 2026, aim to simplify tax procedures and enhance compliance.
• HRA exemption rules updated: 50% exemption now available in 8 cities, up from 4.
• Bengaluru, Pune, Hyderabad, and Ahmedabad added to the list of cities eligible for 50% HRA exemption.
• HRA exemption is only for those filing under the old tax regime and requires living in a rented house not owned by self or spouse.
• Landlord's PAN mandatory if annual rent exceeds ₹1 lakh; tenants may need to disclose relationship with landlord to prevent tax evasion.