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HRA deduction for individual
My client is a salaried person who receives a HRA of ₹120000 per month, and he is covered under 10% surcharge criteria. He he lives in his own parents home. He used to pay HRA of 8000 pm just to not furnish PAN. His mother is home maker and just have a capital gains as her income. Can he just increase the HRA amount to around 40,000 pm and furnish the PAN of the parents and get the eligible deduction. What problem will he face if he furnishes this in his ITR?
Replies (2)
Quick Summary
No problem, if the makes rent agreement with his parent/s, and the parent/s declare the income under their ITR.
Transfer the rent amount by bank transfer. Check for TDS liability, if any.
Your mother may have to pay tax on rent + capital gains based on the total income..
You may go for tax saving instrumets
You may go for tax saving instrumets
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