India, March 29 -- Amit, a salaried professional in Mumbai, pays an annual rent of Rs.1.8 lakh to his father and claims HRA. From April 1, 2026, his tax filings require greater scrutiny and disclosure. He must clearly mention the landlord-tenant relationship, provide his father's PAN, and ensure rent is transferred through banking channels. A formal rental agreement and consistent documentation become essential to support his claim.

Amit now needs to complete Form 124, replacing Form 12BB, while maintaining a clear digital trail of payments. If his documents are incomplete or inconsistent, his HRA claim could be rejected, increasing taxable income and reducing take-home pay.

If Amit fails to disclose the relationship or if the rental ar...