Form 12BB is now Form 124: HRA, rent receipts and proof season

Latest update

From 1 Apr 2026, the Income-tax Act, 2025 and the Income-tax Rules, 2026 apply.

• The old Form 12BB is now Form 124.
• It is filed under section 392(5)(b) of the new Act (old section 192).
• The rule is Rule 205 (old Rule 26C).

The work is the same. You tell your employer about HRA, LTA, home-loan interest and deductions. You give proof. The employer then cuts less TDS.

Source: Income Tax Department FAQ on Form 124.

What this guide covers

1. What Form 124 is, and who files it.
2. What to fill for HRA, and when landlord PAN is needed.
3. Rent agreement vs rent receipts.
4. The HRA formula under Rule 279, with worked examples.
5. Old regime vs new regime for HRA.

Form 124 in short

Parts of Form 124

Part A: Your details

1. Name (full, no short forms)
2. Address
3. PAN
4. Email ID
5. Contact number
6. Tax Year

Part B: Your claims and proof

1. House Rent Allowance
   • Name of the landlord
   • Address
   • PAN of the landlord (see below)
   • Aadhaar number
   • Relationship with the landlord, if any
   • Rent paid to the landlord
2. Leave travel concession or assistance
3. Interest on borrowing (home loan): name, address and PAN of the lender, and interest paid
4. Deductions under Chapter VIII-A and B (for example section 123, 124, 130, 131)
5. Annexures with proof

Then sign the Declaration with place and date.

Landlord PAN: when is it needed?

The landlord's PAN is mandatory if the rent paid in the tax year is more than ₹1,00,000.

Example: Rent ₹9,000 a month × 12 = ₹1,08,000. This is above ₹1,00,000. So give the landlord's PAN.

Aadhaar of the landlord: the FAQ says it is not mandatory, unless your employer asks for it.

Proof to attach

The FAQ also says you can include children's education fees and medical reimbursement or health insurance, if your organisation allows it.

Rent agreement or rent receipts?

• The Form 124 annexure for HRA is the house rent agreement.
• Many employers also ask for monthly rent receipts. This is their own payroll rule.
• Give what your employer asks. Keep both if you can.

Need receipts? Make them with our free Rent receipt generator. Each receipt should show the month, rent, your name, the landlord's name, the address and the landlord's PAN if rent is above ₹1,00,000 a year.

Tip: Pay rent by bank transfer or UPI. The bank record is extra proof.

HRA exemption: the formula (Rule 279)

The exempt amount for the special allowance in Schedule III (Table: Sl. No. 11) is set by Rule 279. Form 124 calls this claim House Rent Allowance.

The exempt amount is the least of these three:

1. Actual allowance received for the period you occupied the house.
2. Rent paid minus 10% of salary for that period.
3. 50% of salary if the house is in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad or Bengaluru. 40% of salary in any other place.

What "salary" means in Rule 279:

• It includes dearness allowance, if your terms of employment provide for it.
• It excludes all other allowances and perquisites.

Count only the period you actually occupied the rented house in the tax year.

What changed in 2026

Rule 279 lists eight cities at 50%. The older section 10(13A) text on the Income Tax Department site listed only Mumbai, Kolkata, Delhi and Chennai. Hyderabad, Pune, Ahmedabad and Bengaluru are in the 50% list in Rule 279.

Worked example 1: Delhi

A salaried employee lives in a rented flat in Delhi for all 12 months of tax year 2026-27. Dearness allowance is nil, so salary here is the basic pay.

Step by step:

1. Actual HRA = ₹3,00,000
2. Rent − 10% of salary = ₹2,64,000 − ₹60,000 = ₹2,04,000
3. 50% of salary (Delhi) = 50% × ₹6,00,000 = ₹3,00,000

Least = ₹2,04,000. This is exempt.

Taxable HRA = ₹3,00,000 − ₹2,04,000 = ₹96,000.

Rent ₹2,64,000 is above ₹1,00,000. So the landlord's PAN is required.

Worked example 2: Pune vs another city

Same employee, different city. Figures for 12 months. DA is nil.

If the house is in Pune (50% city in Rule 279):

1. Actual HRA = ₹2,40,000
2. Rent − 10% of salary = ₹3,60,000 − ₹48,000 = ₹3,12,000
3. 50% of salary = ₹2,40,000

Least = ₹2,40,000. The full HRA is exempt.

If the house is in a 40% place:

3. 40% of salary = 40% × ₹4,80,000 = ₹1,92,000

Least = ₹1,92,000. Taxable HRA = ₹2,40,000 − ₹1,92,000 = ₹48,000.

Check your own numbers with our HRA exemption calculator.

Old regime or new regime?

• HRA exemption is only in the old regime.
• In the new regime (section 202), the exemption under Schedule III (Table: Sl. No. 11) is not allowed.
• So if you stay in the new regime, Form 124 HRA details do not reduce your TDS.

Not sure which regime is better for you? Compare both in our Income tax calculator.

Step by step: proof season

1. Open your employer's payroll / HR portal.
2. Find the Form 124 (it may still be called "Form 12BB" or "investment proof").
3. Fill Part A. Check PAN and name.
4. For HRA, enter landlord name, address, PAN (if rent is above ₹1,00,000 a year), relationship if any, and rent paid.
5. Upload the rent agreement. Add rent receipts if your employer asks.
6. Add home-loan, LTA and deduction proofs if you claim them.
7. Sign the declaration. Submit before your employer's last date.
8. Check your next payslip. TDS should now reflect the proofs.

The last date for proof is set by your employer. The FAQ does not give one date for everyone.

Missed the employer's last date?

• Your employer may deduct TDS without the exemption.
• You can still claim eligible items in your income tax return (old regime only for HRA).
• Keep all proof safe. You may need it later.

Checklist

• Correct tax year: 2026-27
• Landlord PAN if rent is above ₹1,00,000 in the year
• Rent agreement copy (Annexure A-1)
• Rent receipts, if your employer asks
• Relationship with landlord filled, if any
• Loan agreement copy for home-loan interest
• Form 122 if you changed jobs this year
• Declaration signed

Official sources

• Form 124 FAQs, Income Tax Department
• Income-tax Rules, 2026, G.S.R. 198(E), 20 March 2026 (PDF)
• Section 392, Income-tax Act, 2025
• Section 202, Income-tax Act, 2025