New HRA rule: 50% discount in Pune, Bengaluru and Hyderabad
The change in the rules of House Rent Allowance (HRA) is a gamechanger for millions of people who live in big cities outside Delhi-Mumbai. The government has now included cities like Pune, Bengaluru, Hyderabad, Ahmedabad and Chennai in the metro city category, which means that tenants living in these cities will now be able to claim HRA up to 50% of their basic salary, which was earlier only 40%. However, along with this, there is also a new rule of Form 124, under which you will now have to clearly tell the Income Tax Department about your relationship with your landlord.