{"id":1307841,"date":"2026-04-01T09:09:48","date_gmt":"2026-04-01T03:39:48","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1307841"},"modified":"2026-04-01T09:15:32","modified_gmt":"2026-04-01T03:45:32","slug":"salaried-employees-from-these-8-cities-can-claim-higher-house-rent-exemption-during-itr-check-full-list","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/salaried-employees-from-these-8-cities-can-claim-higher-house-rent-exemption-during-itr-check-full-list\/","title":{"rendered":"Salaried Employees From These 8 Cities Can Claim Higher House Rent Exemption During ITR: Check Full List"},"content":{"rendered":"\n<p>The government has notified the <strong>Income Tax Rules, 2026<\/strong>, bringing important changes to House Rent Allowance (HRA). The update expands tax benefits to more cities and introduces stricter compliance rules\u2014impacting how salaried employees claim HRA from April 1, 2026.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"564\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/04\/Screenshot-2025-11-08-at-8.11.37-AM-1024x564-1.png\" alt=\"Salaried Employees From These 8 Cities Can Claim Higher House Rent Exemption During ITR: Check Full List\" class=\"wp-image-1307846\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/04\/Screenshot-2025-11-08-at-8.11.37-AM-1024x564-1.png 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/04\/Screenshot-2025-11-08-at-8.11.37-AM-1024x564-1-300x165.png 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/04\/Screenshot-2025-11-08-at-8.11.37-AM-1024x564-1-768x423.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">More Cities Now Eligible for Higher HRA Exemption<\/h3>\n\n\n\n<p>One of the biggest changes is the <a href=\"https:\/\/economictimes.indiatimes.com\/wealth\/tax\/good-news-for-salaried-employees-in-these-cities-as-they-can-get-higher-hra-exemption-disclosure-of-relationship-with-landlord-a-must-as-income-tax-rules-2026-notified\/articleshow\/129694442.cms?from=mdr\"><strong>expansion of cities eligible for higher HRA tax exemption<\/strong>.<\/a><\/p>\n\n\n\n<p>Earlier, only four metro cities qualified:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delhi<\/li>\n\n\n\n<li>Mumbai<\/li>\n\n\n\n<li>Kolkata<\/li>\n\n\n\n<li>Chennai<\/li>\n<\/ul>\n\n\n\n<p>Now, the list has been expanded to include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bengaluru<\/strong><\/li>\n\n\n\n<li><strong>Hyderabad<\/strong><\/li>\n\n\n\n<li><strong>Pune<\/strong><\/li>\n\n\n\n<li><strong>Ahmedabad<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This means salaried employees in these cities can now claim <strong>higher tax deductions on rent<\/strong>, significantly improving tax savings.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">HRA Exemption Limit Increased to 50%<\/h3>\n\n\n\n<p>With this update:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employees in these 8 cities can claim <strong>up to 50% of salary as HRA exemption<\/strong><\/li>\n\n\n\n<li>Earlier, the newly added cities were treated as non-metros with only <strong>40% exemption limit<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This is a major benefit, especially for people living in high-rent cities like Bengaluru or Pune, where rental costs are already comparable to metros.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Important Rule: Disclosure of Landlord Relationship<\/h3>\n\n\n\n<p>Along with higher benefits, the government has also tightened compliance.<\/p>\n\n\n\n<p>A new requirement has been introduced:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxpayers must <strong>disclose their relationship with the landlord<\/strong><\/li>\n\n\n\n<li>This applies especially when rent is paid to <strong>family members (parents, relatives, etc.)<\/strong><\/li>\n\n\n\n<li>A new reporting format (like Form 124) has been introduced for this purpose<\/li>\n<\/ul>\n\n\n\n<p>This step aims to <strong>prevent misuse of HRA claims<\/strong> and ensure transparency.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">HRA Still Available Only Under Old Tax Regime<\/h3>\n\n\n\n<p>It is important to note:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HRA exemption is available <strong>only under the old tax regime<\/strong><\/li>\n\n\n\n<li>Under the new tax regime, <strong>no HRA benefit can be claimed<\/strong><\/li>\n<\/ul>\n\n\n\n<p>So, salaried employees may need to reassess whether the old regime is more beneficial after these changes.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Why This Change Matters<\/h3>\n\n\n\n<p>The expansion reflects a practical shift in India\u2019s urban economy:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cities like Bengaluru, Pune, and Hyderabad now have <strong>metro-level rental costs<\/strong><\/li>\n\n\n\n<li>Earlier tax rules did not reflect this reality<\/li>\n\n\n\n<li>The new rules bring <strong>tax policy in line with actual living costs<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on Salaried Employees<\/h3>\n\n\n\n<p>For employees in the newly added cities, this means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher tax savings<\/li>\n\n\n\n<li>Lower taxable income<\/li>\n\n\n\n<li>Potential increase in take-home salary<\/li>\n<\/ul>\n\n\n\n<p>However, stricter documentation means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Proper rent receipts and disclosures are now essential<\/li>\n\n\n\n<li>Any mismatch or non-disclosure could lead to scrutiny<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Bigger Picture: More Benefits, But With Accountability<\/h3>\n\n\n\n<p>The Income Tax Rules, 2026 follow a clear pattern:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expand benefits<\/strong> (higher HRA limits)<\/li>\n\n\n\n<li><strong>Increase compliance<\/strong> (stricter disclosures)<\/li>\n<\/ul>\n\n\n\n<p>This ensures that genuine taxpayers benefit, while misuse is minimized.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government has notified the Income Tax Rules, 2026, bringing important changes to House Rent Allowance (HRA). The update expands tax benefits to more cities and introduces stricter compliance rules\u2014impacting how salaried employees claim HRA from April 1, 2026. More Cities Now Eligible for Higher HRA Exemption One of the biggest changes is the expansion [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1307846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[9668,9413],"class_list":["post-1307841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-house-rent","tag-hra"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Salaried Employees From These 8 Cities Can Claim Higher House Rent Exemption During ITR: Check Full List - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/salaried-employees-from-these-8-cities-can-claim-higher-house-rent-exemption-during-itr-check-full-list\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Salaried Employees From These 8 Cities Can Claim Higher House Rent Exemption During ITR: Check Full List - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"The government has notified the Income Tax Rules, 2026, bringing important changes to House Rent Allowance (HRA). 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