New rules for HRA claims from April 1, 2026: Disclosure of relationship with landlord will be mandatory..

The government has proposed a major change in the rules for claiming HRA (House Rent Allowance) under the new Income Tax Act, 2025. According to the draft rules, from April 1, 2026, when claiming HRA, you will no longer need to provide not only rent and receipts, but also your relationship to the landlord to whom you are paying rent. This provision has been added to the new Form 124.

Why this change?

Until now, when claiming HRA, employees would only provide rent receipts and proof of rent payment—even if the landlord was a relative. However, the government has observed that many people fraudulently obtain tax exemptions by showing rent to a relative landlord. To prevent such claims, disclosure of the relationship with the landlord has now been made mandatory.

New Rule: What must be disclosed?

According to the draft rules, the following information will need to be provided when claiming HRA:

Landlord's name
Landlord's address
Landlord's PAN
Your relationship to the landlord (e.g., father, mother, wife/husband, brother/sister, other relative, or none)

All this information will now need to be filled in Form 124, which is used for HRA claims.

When will the new rule come into effect?

The government has released a draft of these rules and proposes to implement them from April 1, 2026. Currently, the rules are drafts—the final rules, with some changes, may be notified next month.

Who will this affect?
Salaried employees who have an HRA allowance and pay rent.
This will be especially effective for employees who claim HRA by showing rent to relatives.

Previously, providing relationship information was not required, but now it will be mandatory.
Purpose of implementing this?

The government's objective is clear:

Curb fraudulent HRA claims.

Increase transparency in the tax system.

Verified verification of rent allowance claims.

This will make it easier for the department to determine whether the rent is genuine or simply inflated to evade taxes.

What does this news mean for you?

If you claim HRA, you must now:

Clearly disclose your relationship with the landlord.

Proper documentation must be maintained.
Rent must be paid by bank transfer.
The landlord must disclose the rental income on their income tax return.
If information is incorrect or concealed, the tax department can conduct compliance checks and issue fines or notices.

Was this rule in place before?

Previously, rent, receipts, and PAN were required for HRA claims, but the relationship with the landlord was not required to be disclosed. This change has been made to allow for a thorough investigation.

Starting April 1, 2026, a new rule will be implemented for HRA claims, requiring you to disclose your relationship with your landlord. This step is aimed at bringing transparency to the tax system and preventing fraudulent claims. If you genuinely pay rent and maintain all documents in order, your HRA claim may continue.

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