Rent Deduction
This query is : Resolved
16 December 2009
Employee works in Noida and Resides in delhi flat, which was given to his wife by goverment job. Employee Permanent Resident in Chandigarg where his parents owns a house . I want to ask that employee can claim rent deduction of Rent given to his parents for chandigarh house
Guest
Guest
(Expert)
17 December 2009
Yes, he can claim d same.
17 December 2009
yes
17 December 2009
op
21 July 2025
Situation Summary:
Employee works in Noida.
Employee lives in Delhi in a flat owned by his wife (given by govt job).
Employee is a permanent resident of Chandigarh, where his parents own a house.
Employee pays rent to his parents for the Chandigarh house.
Query: Can the employee claim rent deduction (under Section 80GG or any other) for rent paid to parents for the Chandigarh house?
What Indian Income Tax Rules Say:
Rent Paid to Relatives:
Rent paid to relatives (including parents) is not eligible for deduction under Section 80GG.
This is because the Income Tax Act specifically disallows claiming deduction if rent is paid to a relative.
Who is a Relative?
As per Section 2(41) of the Income Tax Act, parents are considered relatives.
Section 80GG Deduction:
Available to individuals who do not receive HRA and pay rent for accommodation.
But if rent is paid to relatives, deduction is disallowed.
Practical Implication Here:
Even though the employee is paying rent to parents for Chandigarh house, this rent cannot be claimed as deduction under Section 80GG.
Other Considerations:
If the employee receives HRA from employer for Noida job, HRA exemption rules apply based on where employee actually resides.
Since the employee resides in Delhi flat owned by his wife (no rent paid here), HRA exemption may not be applicable for Delhi.
Claiming rent paid for a house in Chandigarh (owned by parents) is unlikely under any section.
Summary:
Rent paid to parents cannot be claimed as deduction.
Employee should check if HRA is provided and claim exemption accordingly.
For rent paid on house owned by parents, no deduction under 80GG or otherwise.
Employee works in Noida.
Employee lives in Delhi in a flat owned by his wife (given by govt job).
Employee is a permanent resident of Chandigarh, where his parents own a house.
Employee pays rent to his parents for the Chandigarh house.
Query: Can the employee claim rent deduction (under Section 80GG or any other) for rent paid to parents for the Chandigarh house?
What Indian Income Tax Rules Say:
Rent Paid to Relatives:
Rent paid to relatives (including parents) is not eligible for deduction under Section 80GG.
This is because the Income Tax Act specifically disallows claiming deduction if rent is paid to a relative.
Who is a Relative?
As per Section 2(41) of the Income Tax Act, parents are considered relatives.
Section 80GG Deduction:
Available to individuals who do not receive HRA and pay rent for accommodation.
But if rent is paid to relatives, deduction is disallowed.
Practical Implication Here:
Even though the employee is paying rent to parents for Chandigarh house, this rent cannot be claimed as deduction under Section 80GG.
Other Considerations:
If the employee receives HRA from employer for Noida job, HRA exemption rules apply based on where employee actually resides.
Since the employee resides in Delhi flat owned by his wife (no rent paid here), HRA exemption may not be applicable for Delhi.
Claiming rent paid for a house in Chandigarh (owned by parents) is unlikely under any section.
Summary:
Rent paid to parents cannot be claimed as deduction.
Employee should check if HRA is provided and claim exemption accordingly.
For rent paid on house owned by parents, no deduction under 80GG or otherwise.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
