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Can i claim rent from my father staying in same house?

Tax queries 800 views 1 replies

gururaj

Tech Lead

36 Points Joined March 2012

Dear All,

I have a query regarding Income tax on Housing Loan. I own a flat in Bangalore and I am currently staying in the same flat with my parents. I am paying around 3.5 lakhs towards Interest and 55k towards principle. I know that I am not eligible for HRA deduction but I am interested to know whether I can claim rent from my father If I receive rent from my father, say around 10k per month, and I can declare that as rental income. But I would be eligible for atleast 2.5 lakhs as interest exemption. Interest Paid + 30% rebate on maintenance - (Annual Rent Recieved - Annual Muncipal Tax paid) 350000+36600 - (130000 - 8000) = 264600/- I can give rent receipts to my father and can account that in his returns. He is a senior citizen. Is this possible to claim rent from my father?

Replies (1)

Arpit Pachisia

734 Points Joined July 2012

Yes, you claim rent from your father. Provided:

1. The residential accommodation occupied by you is not owned by your father; and

2. Your father has actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by you;

3. Ensure that properly stamped rent receipts are issued on a monthly basis.

4. The rent agreement is duly executed on a properly stamped paper.

5. Normally in a rented property, the electricity charges, water bill, minor repair and maintenance is borne by the tenant. Therefore, ensure that such charges are paid by your father's own funds.

Thanking you