ITR filing: Why taxpayers claiming HRA may need to disclose a secondary address

The Income Tax Department has introduced a new disclosure requirement in the Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27, requiring taxpayers to provide both a primary and a secondary address. While the change has drawn attention from salaried employees claiming House Rent Allowance (HRA), tax experts say the requirement is aimed at improving taxpayer records and is not specific to HRA claims.

Under the revised ITR forms, taxpayers can now report two addresses instead of one, allowing those who maintain multiple residences, such as a rented home at their workplace and a permanent family residence, to disclose both.

According to Mousami Nagarsenkar, Partner, Deloitte India, the new address classification is intended to help the Income Tax Department maintain updated contact information and minimise communication issues arising from incomplete or outdated address records.

"The revised ITR forms for AY 2026-27 introduce a secondary address field. Earlier, taxpayers were required to provide only one address, but the new forms classify addresses as primary and secondary, allowing individuals who maintain more than one residence to report both," Nagarsenkar told Fortune India.

She clarified that the requirement is not linked specifically to HRA claims and applies generally to taxpayers filing the relevant ITR forms. Where an individual has only one address, the same address can be furnished as both the primary and secondary address.

Who should disclose a secondary address?

Nagarsenkar said employees claiming HRA while living in rented accommodation that is different from their permanent residence should provide both addresses in their income tax return.

In such cases, the rented accommodation for which HRA is being claimed can be disclosed as the primary address, while the permanent residence, family home or any other relevant address can be mentioned as the secondary address. She said the revised forms are designed to better capture taxpayers with multiple residences, thereby improving communication and traceability.

Echoing a similar view, Deepashree Shetty, Partner, Global Mobility Services, Tax and Regulatory Advisory, BDO India, said the additional address field is aimed at enhancing transparency rather than increasing compliance requirements.

"The new address disclosure is less about additional compliance and more about better taxpayer record-keeping. It is intended to reduce ambiguity where individuals maintain multiple residences," Shetty said.

Does it affect HRA eligibility?

According to Shetty, the introduction of the secondary address field does not alter the rules governing HRA exemption.

Taxpayers claiming HRA should, however, ensure that the residential details provided in their tax returns accurately reflect their actual living arrangements. The new disclosure requirement is intended to improve the quality of taxpayer information rather than change the eligibility criteria for claiming HRA benefits.