HRA - Rent Agreement

2335 views 7 replies
Hello Friends

Can any one tell me with reference to provisions :

1. Whether there can be any rent agreement between mother and son ?

2. Whether HRA exemption is available, if son pays rent to his mother?

Thanks

Sumit Aggarwal
Replies (7)
the answer to both above questions is "YES"

there is no bar in any law for the time being that prohibits such a transaction. the only condition is that the houe owner must be mother that is the house is owned or purchased by mother. It should not be ancesteral.

2nd thing is that HRA : look is son actually pays rent to mother and obtains a reciept and also is rent is above TDS limit the son deducts TDS then as per law HRA is allowed as per rules.

but this is a tax planning tool IN most cases its being done ACTUALLY its not tax planning but Tax evasion tool whereby mother is not dependant upon son and son pays rent (it is totally unbelievble).
bye
Purely this a contract in between the two majors and in the eye of law acceptable
this is a valid contract & son can pay rent to mother
Dear friends

Ithink shivaprasad has given a proper answer

SD.
hi would you say HRA copy what is that because iam an article student

hie,

i m ataying in a rented house with a rent of Rs 9000/- pm.

while submitting my rent recieot for incometax purpose, do i need to submit my rent agreement also.

or there is any IT rule that if rent is more than Rs10000/-pm then only rent agreement is to be submitted. if so plz mail me with the link or cluase number where its written.

 

Regards

Atul

Hi Mr. Atul as per my knowledge there is no I.T. rule of that kind.


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