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

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.

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

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
Rental receipt with pan
IT dept is focussing on HRA and housing loan exemptions. So don't go for unethical practices of tax evasion which cause huge penalty

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