Can i give rent to my mother staying in the same house?

If you live with your parents, pay them rent and claim your HRA. However, the house should be registered in their name for you to make this claim. Your parents will be taxed on this. They can claim a flat 30% of the annual rent as deduction is for maintenance expenses such as repairs, insurance, etc., irrespective of the level of actual incurred expenditure. 

So, say you pay Rs 25,000 a month, that is, Rs 3 lakh a year, your parents will have to pay tax on only Rs 2.1 lakh. The amount that is over and above the basic Rs 2 lakh exempt limit (Rs 2.5 lakh in case they are above 60 and up to Rs 5 lakh if above 80 years of age), can be invested in their name under tax-free Section 80 C options such as the Senior Citizens Saving Scheme, five year bank fixed deposits or tax saving equity mutual funds. 

You get a bigger benefit if the house is co-owned by your parents. Then they can split the earning from rent and show separate tax liability.

That's great! Thanks Ankush and Raj.

I have one more question. When my parents submit their return for showing the income, will ITR-1 suffice? There is one option in ITR-1 as Income from One House Property - where the options are - Self Occupied and Let Out. Can they keep Let Out in this case, though they are staying in the same house?

@ Arjun Dasgupta  As per Me you have to file ITR-2 for your parents since there have income other than from PGBP i.e. business income.ITR-1 is filed for salary and interest income.

Yes you should choose to say your house as let out in ITR 2.