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New ITR Forms – Secondary Address Rule: A crucial update has been issued for salaried employees filing Income Tax Returns (ITR) for the Assessment Year 2026-27. The Income Tax Department has introduced a new column in this year's ITR forms, requiring taxpayers to provide a 'secondary address' in addition to their primary address.

This change has particularly drawn the attention of salaried employees who live in rented accommodation in a city other than their hometown and claim House Rent Allowance (HRA). Let us understand why the tax department has implemented this rule and how it might impact your HRA claim.

Why is the 'Secondary Address' in the ITR form necessary?

According to tax experts, the Income Tax Department's objective behind seeking two addresses is to streamline communication records with taxpayers and enhance financial transparency.

Mousami Nagarsenkar, Partner at Deloitte India, states, "Previously, taxpayers were required to provide only one address. The new form offers options for both primary and secondary addresses, catering to individuals who reside in more than one home or have different permanent and temporary addresses. This ensures the department holds updated contact information, eliminating issues where notices or important communications might be missed due to outdated or incomplete address details."

HRA verification will become easier

Experts note that while this rule is not exclusively for HRA, it will significantly simplify the process for the tax department to verify HRA claims. Often, individuals work in one city, submit rent receipts from another location, and list their parents' home as their primary address. Having two addresses will now clarify exactly where the taxpayer was residing on a rental basis.

Who needs to provide a 'secondary address'?

This new rule is extremely helpful and essential for employees availing HRA benefits under the old tax regime—specifically those living in rented accommodation in cities like Delhi, Mumbai, or Bengaluru due to their jobs, while maintaining a permanent home in their village or another city.

In such cases, you can list your current rental accommodation as the primary address and enter your hometown or permanent residence in the secondary address column.

However, simply filling in this column does not guarantee the approval of your HRA claim. To avail the HRA exemption, you must possess valid documents such as rent receipts, a rent agreement, and the landlord's PAN card.

Will your HRA claim be rejected if you enter an incorrect or incomplete address?

What happens if there is a discrepancy or a typographical error in either of the addresses? According to Chandni Anandan, a tax expert at ClearTax, this could lead to serious consequences. If your secondary address does not match the details in your rent agreement or receipts, your HRA claim could be questioned during tax assessment.

The Income Tax Department may seek clarification in the event of an address mismatch. You might be asked to submit the rent agreement, landlord details, and proof of address for verification, which could stall your refund or delay processing. Furthermore, if you fail to produce accurate and matching supporting documents when requested, the Income Tax Department could reject your HRA claim entirely.

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