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News India Live, Digital Desk: If you are employed and save tax every year through House Rent Allowance (HRA), then this news is very important for you. The central government has notified revolutionary changes in the income tax rules for the financial year 2026-27. These rules, which will come into effect from April 1, 2026, will not only change the calculation of your tax savings, but in the name of transparency, you will now also have to give the ‘raw log’ of your relationship with your landlord to the department. Ignoring the rules can become a reason for notice from the Income Tax Department in future.
People living in these 8 cities will get the benefit of 50% discount on silver.
Under the new rules, the government has expanded the scope of metro cities, giving big relief to the salaried class. Now, along with Mumbai, Delhi, Kolkata and Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad have also been included in the list of cities with ‘high HRA exemption’. This simply means that employees living in these eight cities will now be able to claim up to 50 percent of their basic salary as HRA tax exemption. For other cities this limit is still maintained at 40 percent. This is expected to provide direct financial benefits to lakhs of youth working in IT and manufacturing hubs.
What is the relationship with the landlord? Now information will have to be given in Form 124
To curb tax evasion and fake rent receipts, the government has now retired ‘Form 12BB’ and replaced it with a new one. Form 124 Have presented. Now while making HRA claim, it will be mandatory for you to tell what is your relationship with the landlord. It has often been seen that people used to save tax by submitting fake receipts in the name of their parents or relatives, but now the department will keep an eye on such transactions. If you are paying rent to any member of your family, then you must have a valid rent agreement and it will be safe to make the payment through bank transaction only.
How will tax exemption be calculated, understand the mathematics
Even though the rules may have increased strictness, the basic principle of HRA calculation will remain the same. The exemption amount will be determined based on the lowest of three conditions: first, the actual HRA received by the employee; Second, the amount left after deducting 10 percent of the basic salary from the total rent paid annually; And thirdly, 40 or 50 percent of the salary depending on the city. Experts say that after the new rules, now employees should start their tax planning much before filing returns in July 2027.
New preparations for stock market and investment also
For the salaried class, changes have been made not only in house rent but also on the investment front. Record keeping has now become more important for those investing in the stock market. SEBI approval is mandatory for a recognized stock exchange and instructions have been given to keep transaction records safe for a long time. Its objective is to make the investment process more secure and transparent, so that the interests of small investors can be protected.