HRA exemption rises to 50% for salaried employees in Hyderabad under new IT rules

Notice new Income Tax Rules This regulation, which will come into force from April 1, 2026, brings good news to taxpayers of Hyderabad, who can claim HRA exemption of up to 50% of their salary. Previously, this exemption was limited to 40 percent. The Central Board of Direct Taxes announced the rules on March 20, 2026.

Hyderabad, Bengaluru, Pune and Ahmedabad are among the new urban agglomerations joining Mumbai, Delhi, Kolkata and Chennai for this hefty tax break. Employees in other parts of the country are granted a 40% exemption.