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Can I claim HRA if I don’t live with my grandparents?

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Teestaa Saha

1 Points Posted on 03 March 2023

I am a 23 year old currently working in an MNC on a WFH basis. My father has a government job which means I currently stay in government quarters with my parents and hence do not pay any rent. My grandparents however live in Kolkata, and I was wondering if I could take an HRA deduction from them if I can create a rental agreement with them, since I do not stay there most of the time.

Any guidance would be highly appreciated.

Replies (4)

Quick Summary

This discussion explores the possibility of claiming House Rent Allowance (HRA) by creating a rental agreement with grandparents, even if you don't reside with them. While technically possible if your employer permits remote work from any city, it's advised to approach this with caution. Tax authorities are increasingly scrutinising HRA claims, and engaging in potentially unethical practices could lead to significant penalties. Consider alternative tax-saving strategies like investments instead.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 03 March 2023

If your employer allows you to work from any city of India, you can plan to claim HRA as suggested.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 03 March 2023

If you are staying with grand parents and paying rent to them , then you can claim HRA.

But it may be risky. Try not go by these options .
You can go for tax planning like investment in tax saving instruments instead of above