Can i pay rent to my father & claim for it?

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This query is : Resolved

SosMe (Querist)

28 August 2011 I am planning to start an office for my freelancing business (as a sole proprietor).Currently I reside with my parents & the house is in my dad`s name, who is aged 60

We have a room in the 1st floor, which I plan to use as office.In that case, can i pay the rent for it to my father, get rent receipts & claim that amount while filing IT as official expense?

Also i would like to add that I have a house in my name in the same city, which is rented out.

Is there any complexities for me or my dad, if I pay rent to him?

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)

29 August 2011 Hi,

If your father is owner of the house and you are paying rent for doing business in 1st Floor of that premises, there is no problem in doing this. It is income for your father and he has to show it in his return.

Ravi Jhamb

Ravi Jhamb (Expert)

29 August 2011 Yes You can considered as expenses in PGBP. for that you will obtain rent receipt from your father and he will fill return Income from House property. No there is no complexity with your father bt it is mandatory fill return.

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