Government Proposes Tenant-Landlord Disclosure in Draft Income Tax Forms for HRA Claims

The government has released draft income tax forms under the new Income Tax Act, 2025, effective April 1, 2026, seeking disclosure of tenant-landlord relationships for claiming House Rent Allowance (HRA) deductions. The new Form 124 requires assessees to declare any relationship with landlords, aiming to deter fictitious rental claims by enhancing transparency. Additionally, the drafts propose increased responsibilities for auditors and companies regarding tax credit claims on foreign income and PAN duplication checks. Final rules and forms will be notified next month after stakeholder consultation.