New Delhi, March 13 -- The new Income Tax (I-T) Act will come into force from 1 April 2026, and the Central Board of Direct Taxes (CBDT) has already released the draft Income Tax Rules along with the proposed forms.

Experts suggest that the new rules - set to come into force on 1 April - will be beneficial to salaried employees who opt for the old tax regime because they will be able to claim higher exemptions. For example, under the new income tax rules, an additional four new cities have been added to the list of cities eligible for 50% salary criterion for computing HRA exemption. Besides, higher children's education and hostel allowance are allowed under the new tax rules.

These are some of the revised exemptions:

1. The exemption ...