Want to claim HRA for rent 7 lacs on my father's name

[psbest85]

Hi,

I would like to claim ₹7 lakhs of annual rent under House Rent Allowance (HRA) paid to my father to save on taxes. However, I have a few concerns:

1. My parents and I live in different cities.
2. My wife is currently claiming HRA for our residence.

I am considering claiming HRA in my father's name, as this amount is tax-free under the new regime. Can I proceed with this? If so, what steps should I take to ensure compliance and avoid any potential income tax notices?

Thank you for your assistance!

 

[TaxWiser]

Hi,

I would like to claim ₹7 lakhs of annual rent under House Rent Allowance (HRA) paid to my father to save on taxes. However, I have a few concerns:

1. My parents and I live in different cities.
2. My wife is currently claiming HRA for our residence.

I am considering claiming HRA in my father's name, as this amount is tax-free under the new regime. Can I proceed with this? If so, what steps should I take to ensure compliance and avoid any potential income tax notices?

Thank you for your assistance!

Hi,
Claiming HRA for rent paid to your father can be a bit tricky, especially given your situation. Here are some key points and steps to consider:

● Key Points:

1. Different Cities:

- You can claim HRA for rent paid in a different city, provided you have a legitimate rental agreement and proof of payment.​

2. Wife Claiming HRA:

- Your wife claiming HRA for your current residence does not affect your ability to claim HRA for rent paid to your father, as long as you meet the necessary conditions.​

3. New Tax Regime:

- Under the new tax regime, HRA is not exempt. Ensure you are under the old regime to claim HRA benefits.​

● Steps to Ensure Compliance:

1. Rental Agreement:

- Draft a legitimate rental agreement between you and your father. Ensure it includes all necessary details like rent amount, payment terms, and duration.​

2. Proof of Payment:

- Maintain proof of rent payments, such as bank statements or rent receipts. Payments should ideally be made through traceable methods like bank transfers.​

3. Father's Income Tax Return:

- Your father must declare the rent received as income in his Income Tax Return (ITR).​

4. Documentation:

- Keep all documentation organized and readily available in case of any queries from the Income Tax Department.​

5. Consult a Tax Professional:

- Given the complexity, consulting a tax professional can provide personalized advice and ensure you comply with all regulations.​

By following these steps, you can claim HRA for rent paid to your father while minimizing the risk of receiving an income tax notice.

(Source: Conversation with Gemini AI, Personal Tax Filing experience)

 

[zacobite]

Hi,

I would like to claim ₹7 lakhs of annual rent under House Rent Allowance (HRA) paid to my father to save on taxes. However, I have a few concerns:

1. My parents and I live in different cities.
2. My wife is currently claiming HRA for our residence.

I am considering claiming HRA in my father's name, as this amount is tax-free under the new regime. Can I proceed with this? If so, what steps should I take to ensure compliance and avoid any potential income tax notices?

Thank you for your assistance!

Hi.. if your father shows the income on his PAN then you can. Both you and wife CANNOT claim on same house / same landlord unless you split the rent claimed.. Else it will create issues for your father on his PAN as the owners PAN is now compulsory in the IT return.. Receipts. will be required if necessary.. HRA calculations will be as per city and your Basic salary..and the HRA in your salary str.. not directly on Rents paid..

 

[zacobite]

Hi,
Claiming HRA for rent paid to your father can be a bit tricky, especially given your situation. Here are some key points and steps to consider:

● Key Points:

1. Different Cities:

- You can claim HRA for rent paid in a different city, provided you have a legitimate rental agreement and proof of payment.​

2. Wife Claiming HRA:

- Your wife claiming HRA for your current residence does not affect your ability to claim HRA for rent paid to your father, as long as you meet the necessary conditions.​

3. New Tax Regime:

- Under the new tax regime, HRA is not exempt. Ensure you are under the old regime to claim HRA benefits.​

● Steps to Ensure Compliance:

1. Rental Agreement:

- Draft a legitimate rental agreement between you and your father. Ensure it includes all necessary details like rent amount, payment terms, and duration.​

2. Proof of Payment:

- Maintain proof of rent payments, such as bank statements or rent receipts. Payments should ideally be made through traceable methods like bank transfers.​

3. Father's Income Tax Return:

- Your father must declare the rent received as income in his Income Tax Return (ITR).​

4. Documentation:

- Keep all documentation organized and readily available in case of any queries from the Income Tax Department.​

5. Consult a Tax Professional:

- Given the complexity, consulting a tax professional can provide personalized advice and ensure you comply with all regulations.​

By following these steps, you can claim HRA for rent paid to your father while minimizing the risk of receiving an income tax notice.

(Source: Conversation with Gemini AI, Personal Tax Filing experience)

2 is not accurate... Two ppl cannot claim on same residence with same owner unless they split the rent

 

[Anil98]

For consulting you on this i would need your specific details.
Like city in which you are renting.
Your salary to calculate HRA.
Breakup of salary.

If you do not wish to share the same as a half ca i will recomend you to make a fair contract with your father and if father has income of 2 lacs or less then claim 3.5 lacs as hra max 5.5 in case of no income and if he is earning more then the limit can increase upto 6 lacs including his real income.