HRA Claims Under Strict IT Scrutiny: Rent Agreement Not Enough, Answer New Questions

• Income Tax Department is strictly scrutinizing HRA claims, especially for rent paid to parents.
• Rent agreements alone are insufficient; digital payment trails (bank transfer, UPI) and proof of parents' ownership are now crucial.
• Parents must declare the received rent as income in their ITR, particularly if annual rent exceeds ₹1,00,000, requiring their PAN.
• Taxpayers may be asked to disclose their relationship with the landlord, with data analytics used to detect fraudulent transactions.
• Future ITR forms may include a relationship disclosure column; maintain valid documents and consistent address proofs.