Hra exemption

for this you may further get into a sublet agreement with your brother and accordingly you may pay rent t your brother.

Such payment of rent shall be allowed in hra.

You could prepare another rent agreement between you and your brother, and get rent receipt from him to avail HRA exemption. And many people follow this practice.

But my landlord insists a 'no subletting clause' in the original agreement. Looks like there is no way out is it?? I am just a little skeptical as my landlord is an NRI and secondly I do declare her PAN number so someday if either of us are pulled up for scrutiny it may be an issue. (Though I hope my fears are baseless and invalid).

I think one needs to understand the 'no subletting clause' here. Subletting typically means that your brother, who is technically the tenant on papers, is no longer residing there but the said flat has been given out on rent to someone other than your brother. The agreement does not want anybody else to reside there other than your brother. It could probably mean that as long as you and your brother are residing in that premises, subletting does not arise, even though your brother is subletting the place to you on papers.

Let others share their opinion.

So you are saying I just submit the rent receipts on my brother's name ? Is a formal agreement necessary between me and my brother ? Secondly, will my brother have to declare this as income?

No subletting can be done atleast legally, without the consent of Landlord.

@ Mihir - I have read some cases where subletting is practised by existing tenants. For ex - a group of students renting a flat and inculcating new members w/o any of the existing member leaving. This has also been covered under subletting.

@ Puja - Yes its illegal but I really don't see a realistic chance of any problem if u go ahead and do it. Many of my friends are doing the same. Anycase u will be leaving d flat in say a couple of years so just chill and do it.

Hope it helps:)

Try getting onto a "joint name" deal with your brother. Explain it to her/ him as a win-win for both ........

One question i am asking ur parents are having any income (i.e., Salary, other sources and etc.,)      (or)

If not,  u can claim the HRA  by way of  "Dependent Parents", the rental agreement can make in ur parents name and including ur name in that as daughter  and receipts can take in ur name.

Then u can avail the HRA benefit.

Regards,

Karthik (Tax Associate)

I am completely agree with reply of MR.kartik (tax associate) if the condition mentioned by him is satisfied but i have few questions:-

What is the problem of ur landlord in including subletting clause??

what is the problem to her making a fresh agreement between u and her not extending the same??

there could be a fresh aggreement between u & her.

Thanks for ur support  Vishal Aggarwal

Another solution in my view, make agreement in ur name and ask them make another agreement regarding about his problem and keep some terms and conditions of his problem duly agree with that and accept .

Example:

Rent a house for any period (months,years or days.) , but u don't have any rights for house property.

I agree with the Chandan Kumar of the conditions for Sub Letting Property

In true sense, your fear is baseless but, yes, it can be happen. speak to your land lord again and tell him to propose a new agreement that will attract any legal objections as he is fearing....

Thanks all...

1. My landlord is scared for some reason i will get rights over her property if I stay for 5 years or more .  Per my understanding it is not possible if I am renewing a leave and license agreement every year. I guess she is just adamnant

2. Yes my parents are dependent. So I guess I shall take your advice and get the agreement in my parents name  and ask her to give receipts in my name as my parents are dependent.

Even I am beginning to feel now that I worried too much :)

I have no rent agreement with the Landlord after the first one for 11 months. I have been staying here for more than 5 + years. Original rent agreement was in my name which had a clause barring me to sub-let. For 3 years my brother is paying the rent by cheque to the owner. My brother and parents are staying with me. Few Questions:

Can I claim HRA showing that my brother is charging me rent?

The rent agreement has expired; does the clause of 'NO sub-letting' still apply?

Is a rent agreement between my brother and me really needed for HRA claim?

Is it legal to make such an arrangement?

Can I claim exemption if my brother is charging me a rent higher than what (my brother) is paying to the owner (I am being charged for furnished house and all the facilities available)?

PS: ALTERNATIVE OPTION: My father is a super senior citizen with only pension income. He has  tax exemption limit of 5 lacs.  Would it be better to show that my father (instead of my brother) is charging me the rent for furnished house and all facilities. But my father doesnt have a PAN number so I was planning to take a declaration from him as allowed by I TAX Authorities.

I would be very grateful if you experts can provide some good advice.

Many Thanks,