Hello,
I am salaried person, working in IT company.
I need to do tax investment planning.
My query is:
Currently I am staying with my parents.
Can I claim HRA if I am giving rent to my parents?
HRA amount allocated by my organization is 4.44LPA.
If i can claim the HRA, upto what amount I can claim?
I am staying in rural area.
A person living in her parents' house can pay them rent and claim exemption for the HRA, provided the parent owns the property. Even in the highest 30% bracket, the arrangement makes sense because there is a 30% standard deduction on rental income.Jan 10, 2022
Yes, you can pay rent to your parents and then claim HRA.
Please make the rent payment transaction via bank to give sufficient evidence to AO if required.
I agree with Ms Pooja Sharma.
Mr Reddy
Father, mother and son are different entities in the eye of income tax.
income of each is taxable in the hands of respective individual and not as a whole.
Hope you will try to read the Income Tax Act carefully.
Regards
The owner of my house is my Mom. And yes I can submit the rent via bank to my mom's account. Also, I can file the itr on behalf of my mom, for income from rented property.
It is OK. Keep rent reciepts ,make an agreement with mom and pay rent by cheque or online transfer
@ Shankar, Can I claim full amount of 4.44LPA, even if I am staying in rural area, where the average rent is around 10-15k per month?
CAclubindia
