The Income Tax Department has introduced a major change to stop misuse of House Rent Allowance (HRA) claims.
If you’ve been claiming HRA by showing rent paid to parents or relatives, things are about to get stricter.
The government now wants more transparency, and fake claims will be easier to catch.
New Rule: More Details Required in Form 124
A new form called Form 124 has replaced the earlier Form 12BB.
This form is used by salaried employees to declare:
Tax-saving investments
Allowances like HRA
Other deductions
Employers use this information to calculate your TDS (tax deducted from salary).
Filling this form is not compulsory, but if you don’t submit it, your employer may deduct higher tax due to lack of proof.
Big Change: You Must Reveal Landlord Details
This is the most important update.
Now, you must clearly mention:
Who your landlord is
Whether the landlord is your relative
Your exact relationship (parent, spouse, sibling, etc.)
Earlier, this level of detail was not required.
Why the Government Made This Change
The main goal is to stop fake HRA claims.
In many cases, people were:
Showing rent paid to family members
Creating fake rent receipts
Claiming tax benefits without real transactions
With the new rule, the system can now cross-check details.
If you claim HRA and your relative (landlord) does not report rental income, it will raise a red flag instantly.
Important Condition: Old Tax Regime Only
HRA exemption is available only if you choose the old tax regime.
If you opt for the new tax regime, you cannot claim this benefit.
What This Means for You
If you are claiming HRA, you need to be careful now.
Provide accurate landlord details
Avoid fake or incorrect claims
Ensure your landlord reports rental income
The new system is designed to catch mismatches quickly.
In simple terms, HRA claims are no longer just paperwork — they are now closely monitored.
