What do Draft Income Tax Rules 2026 say about paying rent to parents, in-laws or spouse?
Ashley Paul, Published on Feb 22nd, 2026

Draft Income Tax Rules 2026 introduced a key compliance change by mandating disclosure of 'relationship with landlord' in Form number 124 to curb tax evasion instead of prohibiting genuine rental agreements. They don't prohibit paying rent to close relatives, like parents, in-laws or a spouse. The rent must be supported by a formal agreement, and rent payments made via banks.
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