House rent to parents

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Mycell Second

21 Points Posted on 05 October 2016

Hi Team,

My parents stay in rental house in the same city with my alone sister. I pay there rent and they don't have any income. Can i claim rent i pay for them in my HRA. I Stay in my own house in the Same City with my Family and i work for private company. Also i don't have any home loan to claim right now. i have closed my home loan.

Thanks in Advance

Sreeni

Replies (2)

Rahul Shah

Assistant Chartered Accountant

142 Points Posted on 05 October 2016

If you have bought a house with the help of a home loan and live in another house on rent, you can claim tax benefit for both. But if the house you bought and the house you live in are in the same city, you should have a genuine reason for not living in the house that you own. The reasons could be that the house you own is too far from your workplace, or the commute is very difficult. You may need to provide these explanations to your employer, or the income tax authority in case there is a scrutiny of the details that you have provided.

Kajal Jain

Freelancer-Chartered Accountant

399 Points Posted on 05 October 2016

If the rent receipt is in ur name...u can take the benefit...
but the correspondence address in ur company records will be the actual house where u stay....so u will have to be ready to answer the same in case question arises...whose chances are very less