Higher HRA exemption expands to more cities under New Income Tax Rules 2026
New Income Tax Rules 2026 extend higher HRA exemption to more cities and mandate disclosure of landlord relationships for better compliance.
From 1 April 2026, employee benefit limits are increasing significantly, allowing organisations to deliver higher in-hand salary without increasing overall compensation cost.

Maximum Benefit
Upto ₹3.24 Lakh
in Tax Free Salary
The new tax framework significantly raises these benefit allowances — here's exactly how much more your employees take home.
Before
₹50
per meal
Now
₹200
per meal
Save up to ₹3,000/month more in taxes
Before
₹5,000
per year
Now
₹15,000
per year
₹10,000 more in tax-free gifting annually
Before
₹1,800
per month
Now
₹5,000
per month
₹3,200 extra commute relief every month
Before
₹2,400
per month
Now
₹7,000
per month
₹4,600 extra commute relief every month
Before
₹900
per month
Now
₹3,000
per month
₹2,100 more driver cost covered tax-free
Before
₹100
per month
Now
₹3,000
per month
Biggest jump — 30x more for each child
Before
₹300
per month
Now
₹9,000
per month
₹8,700 more in accommodation relief monthly
Bengaluru, Pune, Hyderabad and Ahmedabad are now classified under the 50% HRA exemption category.
A smarter framework that transforms how organisations think about employee compensation — turning tax rules into take-home advantages.
Zaggle enables tax-efficient employee benefits that are simple for employees to access and structured for organisations to manage with built-in compliance.
Stay informed with the latest tax benefit announcements and how they impact your take-home pay
New Income Tax Rules 2026 extend higher HRA exemption to more cities and mandate disclosure of landlord relationships for better compliance.
New Income Tax Rules 2026 introduce updates to HRA, meal benefits, employee loans, and education allowances, aiming to improve take-home pay and tighten compliance.
From revised salary perks and digital tax triggers to tighter disclosure norms, the new Income Tax framework brings wide-ranging changes effective April 1, 2026.
Zaggle helps HR teams design tax-efficient, compliant and digital-first employee benefit programs under the new income tax framework.
From tracking benefit discovery to maximizing tax savings, everything's designed to keep your benefits clean, actionable, and always up-to-date.
All benefit structures are aligned with the latest Income Tax Act amendments effective April 1, 2026.
Restructure existing CTC to unlock more in-hand salary without increasing payroll expenses.
Automated claim processing, instant approvals, and paperless benefit management for modern teams.
Everything you need to know about the new tax framework
Our team is here to help you understand the new tax framework
Get started with our expert team and unlock maximum value under the new tax framework