Union Budget 2024 Income Tax Live Updates: Bengaluru to be considered as metro city for the purpose of 10(13A) or HRA
The Constitution of India recognizes Bengaluru as a metro city amongst other cities, such as NCR, Mumbai, Kolkata, Pune, Hyderabad, and Chennai. However, per the Income Tax provisions, only four cities in India (Delhi, Mumbai, Chennai, and Kolkata) are considered to be metro cities and allowed to have 50% of the basic salary as the House Rent Allowance (HRA) and 40% of basic salary for non-metro cities (other cities). Being one of world’s fastest growing cities, Bengaluru provides employment to many. There is an increase in the cost of living in the city compared with other cities. Hence, employees should get a 50% deduction for HRA, says Tapati Ghose, Partner, Deloitte.
