Regarding to claim HRA

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An employee with HRA included in their salary is asking if they can claim it by renting a property from their mother, who owns a separate house. The advice given is yes, provided there's a proper rental agreement, rent receipts, and actual rent transfer. It's also noted that the rent will be taxable in the mother's hands. Clarification is sought on whether claiming HRA up to £180,000 is possible if the mother is a homemaker with no income, and if a separate ITR is needed for her.

Sanket Jojan

Sanket Jojan (Querist)

07 April 2024 As an employee with HRA included in my salary, I'm interested in claiming it. Can I claim HRA by having a rental agreement with my mother, who owns a separate house apart from my permanent home address?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 April 2024 Yes, you can claim, rent is taxable in your mother's hand.

Sanket Jojan

Sanket Jojan (Querist)

08 April 2024 Thank you so much for providing the answer to my query.
Could you also help me understand this: My mother is a homemaker with no income source. Can I claim HRA up to 180000 without paying tax? Do I need to file a separate ITR for my mother?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 April 2024 An employee staying in his own house is not entitled to claim HRA benefits.
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Sanket Jojan

Sanket Jojan (Querist)

08 April 2024 My house is different , my mother owns different house

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 April 2024 you may do so. but only after ensuring that there is a proper rent agreement, rent receipts and actual transfer of rent from you to your mother's account. Ideally, in this period, the utility bill for that house should also be paid from your account. Income-tax department is keeping a track of HRA claims and clamping down any misuse of the provisions thereof.

Sanket Jojan

Sanket Jojan (Querist)

10 April 2024 Thank you so much 😊

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