BJP MP Tejasvi Surya on Tuesday requested Finance Minister Nirmala Sitharaman to classify more ‘metro cities’ in the Income Tax rules so that more salaried employees can claim higher house rent allowance (HRA).
He asserted that this move would greatly benefit crores of middle-class taxpayers across the country.
Speaking during Zero Hour, Surya said under the current Income Tax rules, salaried employees in only four cities — New Delhi, Chennai, Kolkata and Mumbai — can claim up to 50 per cent HRA.
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“I rise to raise a very important issue concerning the salaried middle class of this country. Speaker sir, I come from Bengaluru, which has one of the highest salaried population in a city in the country.
“But sir, under the Income Tax rules only four cities — New Delhi, Chennai, Kolkata and Mumbai — are considered as metro cities for the purpose of House Rent Allowance (HRA) deduction up to 50 per cent for salaried employees,” Surya said.
He said a large number of salaried employees staying in Bengaluru, Hyderabad and other such cities but could claim only up to 40 per cent deduction.
As per the Income Tax rules, salaried employees in a ‘metro city’ can claim up to 50 per cent of their salary for HRA deduction and up to 40 per cent in non-metro cities.
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“My request to the Finance Minister is to kindly review the Income Tax rules and add more cities like Bengaluru and other similarly placed cities so that they (salaries employees) can also claim up to 50 per cent deduction,” he said.
Surya further said with newer cities growing and a large salaried class living in Bengaluru and similar other cities where the cost of housing is high, it is necessary for other cities to also be considered as metros.
“This will greatly benefit crores of middle-class taxpayers across the country,” he said.
