Increase in HRA amount exemption

Save Share

This query is : Resolved

Quick Summary

A person is seeking advice on increasing their House Rent Allowance (HRA) exemption by paying higher rent to their mother, following a salary hike. They are concerned about potential issues with increasing the HRA amount, particularly if it exceeds a 10% annual increase guideline. The advice given is that increasing HRA is generally permissible, provided the higher rent payments can be validated, and that rent increases typically happen on an annual basis.

Kush Thukral

Kush Thukral (Querist)
Follow

18 April 2021 Hi,

I just got a hike in my salary and I pay rent to my mother who files ITR. I have been paying rent from past 7 months and due to increase in salary i want to pay more rent to my mother and declare it to my employer thus reducing my tax liability. Will it be a problem to increase my Hra amount, is there any such issue with increasing the HRA amount more than 10% which is what is said to be the amount that can be increased by the owner every year or two. Could you guide me on this, if it is justified to do this.