Big tax savings in old tax regime: Monthly hostel allowance of Rs 9,000; savings of Rs 89,000 on Rs 15 lakh salary, check the impact of draft income tax rules 2026

New draft income tax rules for 2026 suggest higher limits for several allowances. Taxpayers in the old tax regime can save more income tax with these proposed changes. Key increases include house rent allowance exemptions, children's education and hostel allowances, and interest-free loan limits. These revisions aim to modernize taxation and address current economic realities.