Federation of Karnataka Chambers of Commerce and Industries (FKCCI) has demanded Finance Minister Nirmala Sitharaman to include Bengaluru under metro cities to enhance HRA (House Rent Allowance) provisions of millions of workers in the city.
The trade body in a pre-budget memorandum requested Ms. Sitharaman to include Bengaluru as a metro for the purpose of HRA taxation computation.
The trade body said the existing provision allowed for a 50% allowance for house rent in metropolitan cities while other regional cities, including Bengaluru, was still under a 40% allowance slab.. Currently, Mumbai, New Delhi, Calcutta, and Chennai are in the 50% allowance slab, while Bengaluru was yet to be included in the HRA metropolitan definition, it said.
The FKCCI argued that Bengaluru contributed significantly to the GDP of the country. It was the hub for IT & ITeS industry, was known as the start-up capital of the country and also cost of living in the city was on par with big cities.
“With the newer cities growing and the cost of living being high in these cities, it is necessary for Bangalore to be considered a metro city under the definition of HRA, which will greatly benefit millions of middle-class taxpayers across the city,” said Uma Reddy, president, FKCCI.
Published – January 29, 2026 01:00 am IST
