Bengaluru, India's IT capital, has been denied again. The capital city of Karnataka, which is also one of the largest cities in India, has been denied the metro status. The central government said that it cannot yet give the city the coveted status.
While speaking in the parliament during the ongoing Monsoon session, Union Minister of State in the Ministry of Finance, Pankaj Chaudhary, said that under the Rule 2A of the Income-tax Rules, 1962, a distinction exists between the existing metro cities and other places.
Why The Metro Status Matters?
Currently, the four major cities in the country, namely Mumbai, Delhi, Kolkata and Chennai, have the said metro tag.
The metro status comes with some perquisites. One of them is the House Rent Allowance Tax Exemption, which is now reportedly on hold.
In addition, 50 per cent of the salary earned was considered for computing the exemption limits under section 10(13A) in the existing metro cities. Bengaluru, including other cities outside of metro cities, have a limit of 40 per cent.
Union Minister of State in the Ministry of Finance, Pankaj Chaudhary |
Bengaluru Denied
The MoS said, that the government had no intention to change the existing policy.
He further said,. “It has been the stated policy of the Government to rationalise tax rates and move away from exemptions and deductions. Therefore, designating more cities as metro cities and extending the benefit of a higher exemption limit on HRA to such cities contradicts the stated policy.”
According to reports, the change could have significantly benefited the residents by aiding them with reduced tax liabilities. | Raju A K
This development comes as a setback, as the IT city has been long demanding the change in order to avail of the benefits of the system.
According to reports, the change could have significantly benefited the residents by aiding them with reduced tax liabilities.
This comes as a chagrin to many the city of Bengaluru has seen monumental growth in various aspects over the past few decades. ina addition, the IT boom has transformed the city from a post-retirement destination to a multi-cultural hub.
