Draft Income Tax Forms Require Tenant-Landlord Relationship Disclosure for HRA Claims

The government has released draft income tax forms under the new Income Tax Act, 2025, effective April 1, 2026, requiring salaried individuals claiming House Rent Allowance (HRA) to disclose any relationship with their landlord in Form 124. This aims to increase transparency and deter fictitious or inflated rental claims. The drafts also propose enhanced auditor responsibilities for verifying tax credit claims on foreign income and checking PAN duplication. Tax experts advise genuine rental agreements, proper documentation, and payments through banking channels to comply with the new rules.