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.

Infographic explaining tax savings of ₹1.41 lakh on a ₹35 lakh salary based on proposed Income Tax rules in India.
Visual representation of tax savings under the proposed Income Tax Rules for a ₹35 lakh salary, highlighting increased allowances and exemptions.