Sublease, HRA
This query is : Resolved
06 September 2024
Hi Experts ,
Can my father sublease home owned by him to my mother who does not have any income, and thereby save on tax. Effectively, he will collect a smaller amount(For ex 5k) as rent ?
And then ,my mother sub leases to me at a premium and records as income from other sources while my father will pay tax on the nominal rent from my mother.
a. Can I claim HRA for paying rent to my mother?
b. Can I pay rent for whole year in one go and claim HRA? or it should be paid monthly basis?
c. Is there any potential issue if all of it is declared and filed?
Can my father sublease home owned by him to my mother who does not have any income, and thereby save on tax. Effectively, he will collect a smaller amount(For ex 5k) as rent ?
And then ,my mother sub leases to me at a premium and records as income from other sources while my father will pay tax on the nominal rent from my mother.
a. Can I claim HRA for paying rent to my mother?
b. Can I pay rent for whole year in one go and claim HRA? or it should be paid monthly basis?
c. Is there any potential issue if all of it is declared and filed?
Dhirajlal Rambhia
(Expert)
07 September 2024
1. Yes if you have rent agreement.
2. Depends upon terms in agreement
3. The rent income will be clubbed into your father's hand as per clubbing provision u/s. 54 IT act.
2. Depends upon terms in agreement
3. The rent income will be clubbed into your father's hand as per clubbing provision u/s. 54 IT act.
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