India, March 20 -- The Central Board of Direct Taxes on March 20 notified rules under the Income Tax Act, 2025, effective April 1, 2026, introducing enhanced HRA benefits for salaried taxpayers while mandating disclosure of the landlord-tenant relationship. Salaried individuals will be required to disclose their relationship with the landlord, especially when renting from family members such as parents, spouse, or siblings, if the annual rent exceeds Rs.1 lakh.

Additionally, eight cities, Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, and Bengaluru, will qualify for a higher HRA exemption limit of 50% of salary, while other locations will continue at 40%.

This new Income Tax Act 2025 will replace the Income Tax Act of 1961...