Salaried employees filing their Income Tax Returns (ITR) for the assessment year 2026-27 should be aware of an important update.
The Income Tax Department has introduced a new field in this year’s ITR forms that requires taxpayers to provide a secondary address along with their primary address.
This change is especially important for employees who live in rented accommodation in a city different from their hometown
and claim House Rent Allowance (HRA). Here’s why the new rule has been introduced and how it could affect your HRA claim.
Why Has the Income Tax Department Added a Secondary Address?
According to tax experts, the main purpose of collecting two addresses is to improve taxpayer communication and increase financial transparency.
Mousumi Nagarsenkar, Partner at Deloitte India, explained that earlier taxpayers had to provide only one address.
The updated ITR forms now allow taxpayers to mention both a primary and a secondary address, making it easier for people who live at more than one location or have separate permanent and temporary addresses.
This change will help the Income Tax Department maintain updated contact details and reduce the chances of taxpayers missing important notices or communications because of an outdated or incomplete address.
How Will This Affect HRA Claims?
Experts say the new rule has not been introduced specifically for HRA claims, but it will make HRA verification much easier.
Many salaried employees work in one city, live in rented accommodation there, but list their parents’ home as their primary address.
They also submit rent receipts for their rented home while claiming HRA. By asking for both addresses, the Income Tax Department will have a clearer picture of where the taxpayer was actually staying during the year.
Who Needs to Provide a Secondary Address?
The new requirement is particularly useful for employees claiming HRA under the old tax regime.
For example, if you are working and living on rent in cities such as Delhi, Mumbai, or Bengaluru, while your permanent home is in your village or another city, you should provide both addresses.
In such cases, you can mention your rented accommodation as your primary address and your hometown or permanent residence as your secondary address.
However, filling in the secondary address alone does not guarantee HRA approval. To claim HRA exemption, you must still have valid supporting documents, including rent receipts, a rent agreement, and your landlord’s PAN card.
What Happens If the Address Details Are Incorrect?
If there is a mismatch or error between the addresses you provide, it could create problems during tax assessment.
According to Chandni Anandan, a tax expert at ClearTax, if the secondary address does not match the address mentioned in your rent agreement or rent receipts, the Income Tax Department may question your HRA claim.
In such situations, the department may ask you to submit additional documents, including your rent agreement, landlord details, and address proof, for verification. This could delay the processing of your ITR or even hold up your tax refund.
If you are unable to provide accurate and matching supporting documents when requested, the Income Tax Department may reject your HRA claim.
