Bangalore to be considered in metro cities list for HRA exemption

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Currently, as per the Income Tax provisions, only four cities in India (Delhi, Mumbai, Chennai and Kolkata) are considered to be metro cities and are allowed to have 50% of the basic salary as the House Rent Allowance (HRA).

However, as per "The Constitution (seventy-fourth Amendment) Act, 1992", it states 7 cities (NCR, Mumbai, Kolkata, Bangalore, Pune, Hyderabad and Chennai) to be considered as metro cities in India.

As per the Income tax act, the allowed HRA for the income tax exemption is 50% of basic salary for metro cities (Delhi, Mumbai, Chennai and Kolkata) and 40% of basic salary for non-metro cities (all other cities), which is unfair.

The government has not updated the list of metro cities in India from last many decades, which is ruining the common man, who pay a huge amount of income tax to the government each year.

We urge the central government to look into this matter and help the citizens live a happy life.



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