Bengaluru MP Tejasvi Surya has raised the issue in Parliament about including Bengaluru in Metro Cities for allowing 50% HRA exemption under Section 10(13A) of the Income Tax Act, 1961 as is available presently to Chennai, Delhi, Kolkata and Mumbai.
He stated that Bengaluru is the city which has the highest salaried population in the country. Therefore, he has requested the Finance Minister to review the Income Tax Rules to include Bengaluru and other similar cities for providing salaried employees with higher HRA exemption limit of 50% at par with Chennai, Delhi, Kolkata and Mumbai.
This higher exemption limit of 50% for HRA, if allowed, would benefit the employees and citizens of Bengaluru and similar upcoming cities/ business hubs. The increased HRA exemption limit will definitely incentivize people to work in Bengaluru and similar cities, as well as lead to an influx of knowledge workers and professionals to such cities.
Tejasvi Surya hopes that the Ministry of Finance will take this proposal seriously and make the necessary changes to the Income Tax Act/ Rules to allow the citizens of Bengaluru and similar cities to enjoy the same HRA exemption limits as their counterparts in other Metro Cities.