{"id":4977,"date":"2026-02-16T19:30:00","date_gmt":"2026-02-16T14:00:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=4977"},"modified":"2026-02-16T15:17:18","modified_gmt":"2026-02-16T09:47:18","slug":"heres-how-you-could-save-up-to-1-lakh-annually-under-the-draft-income-tax-rules-2026","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/heres-how-you-could-save-up-to-1-lakh-annually-under-the-draft-income-tax-rules-2026\/","title":{"rendered":"Here\u2019s How You Could Save Up to \u20b91 Lakh Annually Under the Draft Income Tax Rules 2026"},"content":{"rendered":"\n
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Synopsis<\/strong>: This article discusses the latest revisions under the draft income tax rules, 2026 and how a salaried employee can save potentially more than 1 lakh under the old income tax regime.<\/em><\/p>\n<\/blockquote>\n\n\n\n

For the past six decades, even when the salary structures evolved and living costs spiked, Indian taxpayers followed the Income Tax Rules, 1962. With the Union Budget 2026, the government has finally introduced the Draft Income Tax Rules, 2026, to align income taxation with the socio-economic realities.<\/p>

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Major Tax-Saving Provisions under the Draft Income Tax Rules 2026<\/strong><\/h2>\n\n\n\n

1. Higher HRA Exemptions:<\/strong> Bangalore, Hyderabad, Pune, and Ahmedabad are being added to the 50% HRA relief eligibility, which was previously enjoyed only by metro cities like Delhi, Mumbai, Chennai, and Kolkata. Salaried taxpayers in these cities can now claim up to 50% of their basic salary as HRA exemption. The remaining cities will continue to remain under the 40% cap.\u00a0<\/p>\n\n\n\n

2. Tax-Free Meal benefits:<\/strong> The draft rules propose to increase the tax-free meal limit from \u20b950 to \u20b9200 per meal. This would bring the tax-free meal benefits up to \u20b91,05,600 if fully utilised.<\/p>