Income Tax Rule 2026: Big Relief for Salaried Class, Save More Tax from HRA to Education

• New Income Tax Act 2025 and Draft Rules 2026 to simplify tax filing and increase allowances, effective April 1, 2026.
• Tax filing to become simpler with standardized forms, more pre-filled information, and easier language.
• HRA exemption of 50% of salary now extended to more cities like Bengaluru, Hyderabad, Pune, and Ahmedabad.
• Children's Education Allowance increased to Rs 3,000 per month per child, and Hostel Allowance to Rs 9,000 per month per child.
• Other benefits include increased tax-free limits for employer gifts, food allowances, and medical loans.