HRA relief, Feb. 9 -- The Centre is likely to expand list of cities eligible for higher House Rent Allowance (HRA) exemption under the old tax regime, according to an Economic Times report.

At present, taxpayers in big metros including Chennai, Delhi, Kolkata and Mumbai are eligible for 50% HRA exemption, while others urban centres can claim 40%.

The proposal seeks to expand the 50% benefit to more cities, including Ahmedabad, Bengaluru, Hyderabad and Pune, as per the report. It added that other cities remain at 40%.

TheThereport noted that the government wants to modernise HRA provision in line with evolving demographics, while keeping up with rental price increase in cities that are economic hubs.

Pune, Hyderabad and Bengaluru are m...