Income Tax Rules 2026: What Changes for Salaried Employees (DRAFT) 1️⃣ Children Education & Hostel Allowance Education allowance proposed to increase from ₹100/month to ₹3,000/month. Hostel allowance proposed to increase from ₹300/month to ₹9,000/month. Higher tax-free benefits under the old regime if implemented. 2️⃣ Meal Allowance Limit may increase from ₹50 per meal to ₹200 per meal. Potential tax savings for high-tax-bracket employees due to higher exempt value. 3️⃣ Non-Cash Gifts & HRA Updates Non-cash gift exemption proposed to rise from ₹5,000 to ₹15,000 annually. More cities like Bengaluru, Hyderabad, Pune, and Ahmedabad may qualify for higher HRA exemption calculations. 4️⃣ Company Car & Medical Benefits Higher perquisite valuation for company cars could slightly increase taxable salary. Medical treatment abroad may become tax-free for income up to ₹8 lakh instead of ₹2 lakh. 5️⃣ PAN Card Rules for High-Value Transactions New draft limits proposed for vehicles, hotels, insura...