New Delhi. If you claim exemption of House Rent Allowance i.e. HRA in Income Tax Return, then read this news carefully. The Income Tax Department has made a new rule to catch those who evade tax through HRA claims. There is a provision in the new Income Tax Act that those claiming HRA will have to provide information about the landlord in Form 124. Earlier there used to be Form 12BB for this. More information about the landlord will have to be given in the new Form 124.
Form 124 of Income Tax is a declaration. If you are employed and file returns under the old income tax provision, then filling Form 124 has been made mandatory. If you do not fill and submit Form 124, then the office will consider your HRA as income and deduct TDS. You will also have to mention in Form 124 whether you are related to the landlord or not. Many people pretend to be living on rent at their wife’s or relative’s place. Now it has been made mandatory to declare this relationship in Form 124. The Income Tax Department has revealed many times that HRA exemption was availed by giving fake receipts. Now this will not be possible.
If you have given all the information about the landlord in Form 124, then the Income Tax Department will see whether the landlord gives the rent information in his return or not. If the landlord does not provide rent information in his income, then there is every possibility of you getting a notice when you claim HRA. Let us tell you that in the last two years, the Income Tax Department had sent notices to thousands of salaried employees for not filing the returns properly or giving wrong information. Till now Income Tax had given the option to file corrected returns, but now the Income Tax Department is in a mood to take strict action against the income tax payer who gives wrong information. The deadline for filing income tax returns for those earning salary and interest is July 31, 2026.
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