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HRA with parents then collecting as gift by son / daugher

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jagdish chhugani

engineer

1085 Points Posted on 21 October 2021

Tel me son getting HRA benefits from parents staying in same house , occupying Space in same apartment, under 50k no need agreement only rent receipt required to submit in company, same or less amount returned as gift father or mother to son , gift is free as per law , do IT can start quiry.

Replies (2)

Quick Summary

This discussion explores the tax implications of claiming House Rent Allowance (HRA) from parents when living in the same house. It clarifies that if the rent is under £50,000 per annum, a formal agreement isn't always necessary, with rent receipts sufficing for company submission. The query also touches upon receiving the rent amount back as a tax-free gift from parents, and whether this arrangement could attract scrutiny from the Income Tax department.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 22 October 2021

Once you know the HRA claim amount, use the right ITR form and file for your ITR by following these steps:

Enter your salary in 'Salary as per provisions contained in section 17(1) ' in Form 16 - Part B.
Enter the HRA calculated above under 'Allowances exempt u/s 10' in the ITR 1 (select 10(13A) in the drop-down menu)