You can save an additional ₹1.4 Lakhs in taxes due to the proposed Income Tax Rules, effective 1st April 2026.
From massive hikes in Children’s Education Allowance to better HRA exemptions for 4 new cities, the “Old Tax Regime” just got a lot more attractive.
📉 The Breakdown:
- Education Allowance: Up from ₹100 to ₹3,000 per month.
- Hostel Expenditure: Up from ₹300 to ₹9,000 per month.
- HRA Exemption: Shift from 40% to 50% of basic in 4 new cities (Bangalore, Hyderabad, Pune, Ahmedabad).
Total Tax Savings: ₹1,41,461 💰
Check out the table above to see exactly how the math works.
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