I live in our ancestral home situated in the Lal-Dora area in an urbanized village in Delhi. As situated in Lal-Dora area, there is no registry however electricy and water meters are in my father's name, so can I pay rent to him considering him the deemed owner to claim rebate in HRA? Thanks
19 September 2012
Many people do such type of family arrangements. Simultaneously, need to check if this rent is becoming taxable in the hands of father. (Service tax, if any required to be paid by father etc.) The question to be answered by yourself is how much tax you are saving in this and how much RISK you are carrying.