The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has asked Finance Minister Nirmala Sitharaman to include Bengaluru under metro cities to improve HRA (House Rent Allowance) provision for millions of workers in the city.
The trade body, in a pre-budget memorandum, asked Ms. Sitharaman to include Bengaluru as a metro for the purpose of calculating HRA taxation.
The trade body said the existing provision allows 50% house rent allowance in metropolitan cities, while other regional cities, including Bengaluru, are still below the 40% mark.
FKCCI claimed that Bengaluru contributed significantly to the country’s GDP. It was the center of the IT and ITeS industry, it was known as the start-up capital of the country and also the cost of living in the city was on par with the big cities.
“With the growing newer cities and the high cost of living in these cities, it is necessary for Bangalore to be considered a metro city as defined by the HRA, which will greatly benefit millions of middle-class taxpayers across the city,” said Uma Reddy, President, FKCCI.
Published – 29 Jan 2026 01:00 IST
