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HRA Concern - whether TDS applicable to my Dad

sonu sonu (7 Points)

14 May 2021

Hi Team,

I work in Pune IT company, due to covid_19 lockdown I came at my native place Hyderabad.

Can I show HRA by showing paying rent to my father?

Also my dad is 64 yrs old, who is getting around 15000 per month.

If I pay 25000 per month as rent to him, Do he needs to fill ITR?? Plz confirm

I do not want any TDS should get deducted from my dad account from his retired savings. Plz suggest & help.

Kindly reply asap.

Regards

Sonu

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13 Replies

SUSHANT BIDAYE (578 Points)
Replied 14 May 2021

TDS applicable only for rent above Rs. 50000 per month.

so in your case no TDs for rent payment to your father

sonu sonu (7 Points)
Replied 14 May 2021

But do my father needs to file ITR?

He never filled ITR in his entire life. Is it applicable to him? He gets 15k as pension amount per month & 25k as rent.

Regards

Sonu

SUSHANT BIDAYE (578 Points)
Replied 14 May 2021

You need calculate his total income. if his income below taxable limit, no need to file.

more details are required .

is he senior citizen,?

also if by making investment , he can bring his income below taxable limit.

no need to file ITR

sonu sonu (7 Points)
Replied 15 May 2021

is he senior citizen,?

YES

veerendar singh (tax consultant) (3301 Points)
Replied 15 May 2021

If you stay for a period of more than 6 months at your father's place then your father would have tk file ITR

anil jain (Partner) (1067 Points)
Replied 15 May 2021

Pl clear, for how many months in a year ( Apr to Mar) you want to pay @ 25000 pm.

sonu sonu (7 Points)
Replied 15 May 2021

Untll lockdown due to covd-19 I will pay rent to parents else I will shift to pune.k

Raman Sharma (36 Points)
Replied 16 May 2021

You should also have a valid rent agreement.. and its good to file return of income by your father as if his pension and rent is included it wont be more than 5 lakhs.. so he will get rebate u/s 87..

anil jain (Partner) (1067 Points)
Replied 17 May 2021

Please see

Pension income under the head Salary 15000 for 12 m 180000 minus Std deduction 50000 becomes130000

Rental income 25000x12 300000 minus std deduction 30 percent being 90000 becomes 210000

Thus total income 340000

exemption limit applicable tp your father is 300000 being sr citizen

In order not to file return, you have 2 option

1. save/deposit more than 40000 in NSC/PPF in father's name

2. reduce rent to 21000 from 25000

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2010 Points)
Replied 17 May 2021

Calculations done by Mr. Anil Jain is perfect.

in my view, your father has to file ITR For sure and mention your PAN in ITR Form.

even the total taxable income as per calculation done by Mr. Jain is 3,40,000/- still there is no tax liabilities upto 5 Lac considering benefit of Sec. 87 A.