Tax Awareness | HRA claims on rent paid to parents or relatives: what changes from April 1, 2026?
From April 1, 2026 , the new Income-tax Rules, 2026 come into force, and the old salary declaration Form 12BB has been replaced by Form 124 .
For employees claiming House Rent Allowance (HRA) , the updated form captures additional details such as:
- landlord’s name
- address
- PAN
- Aadhaar number
- relationship with landlord, if any
- amount of rent paid
This means that if you are paying rent to your parents or another relative , that relationship may now be disclosed in the employee declaration submitted to the employer.
However, this does not mean that HRA on rent paid to parents is automatically disallowed.
What matters is whether the arrangement is:
- genuine
- properly documented
- correctly reported
If the rent arrangement is genuine and supported by proper records, there is no reason to panic.
Another important point is that landlord PAN is required where annual rent exceeds ₹1,00,000 .
So what is the real takeaway?
The change is mainly about greater transparency and easier verification , especially in family-rent cases.
If the rent arrangement is genuine, employees should maintain proper records such as:
- rent agreement
- correct landlord details
- rent receipts, where applicable
- clear payment proof
HRA continues to be a valid tax benefit in genuine cases, including where rent is paid to parents or relatives. From April 1, 2026 , the process becomes more structured, with additional disclosure and stronger documentation expectations.
Top FAQ:
Is landlord PAN compulsory?
Yes, where annual rent exceeds ₹1,00,000 , landlord PAN must be furnished in Form 124.
Is Aadhaar compulsory?
The official FAQ indicates that Aadhaar is not mandatory unless specifically requested by the employer .
Primary Source: Etds