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Can I pay rent to spouse and claim HRA?
You can certainly claim the rent paid to your wife as an expense for the part of the premises used for your business or profession but generally, it is more onerous to prove a commercial relationship between husband and wife. We live in a house which is in the name of my wife.
Yes, both husband and wife can claim HRA separately for their respective shares, but total rent claimed by both must not exceed ₹ 20,000.
Can spouse claim rental income only?
As you and your spouse are co-owners of the property, you both must report your share of the rental income or loss for the calendar year in proportion to your ownership. Your rental income must be reported in the same proportion every year unless there is a change in the proportion of ownership.
Can I pay my wife for managing properties?
Yes, she is able to do so. However, the Revenue are suspicious of such arrangements, understandably. Firstly, you must be able to show that you are doing work that, if it wasn’t you who did it, your wife could be reasonably expected to hire and pay someone else to do.
How can I save tax on my rental income?
Here’s how you can reduce taxes on your rental income
- TDS on rent. As per Section 194IB, when a house is let out for individuals or Hindu Undivided Families (HUF), the tenants are obliged to deduct tax at 5 per cent, if the monthly rent exceeds Rs 50,000.
- Sub-letting of the premises.
- Composite rent.
- Notional rent.
Can I pay rent to my wife to claim HRA tax benefit?
Yes, you can pay rent to my wife or spouse or parents to claim the HRA tax benefit in India. In the eyes of Income-tax, each individual is a separate entity and hence can have his own income. You can pretty well pay the rent to your spouse and claim the HRA tax exemption for your income. Rent Is Income of Wife/Parents
Can I claim rent paid to my wife as an expense?
You can certainly claim the rent paid to your wife as an expense for the part of the premises used for your business or profession but generally, it is more onerous to prove a commercial relationship between husband and wife. You will need to keep certain things in mind and maintain appropriate documentation to justify the claim.
Can I pay rent to my spouse and parents?
You can pretty well pay the rent to your spouse and claim the HRA tax exemption for your income. The only thing to consider is the rent paid should be counted as INCOME for the spouse or the parents. If your spouse or parents do NOT have any other income source, then this INCOME (rental) could be pretty beneficial.
Can I claim HRA for a co-owned house?
You can only claim HRA under this Section only if you are staying in a rented accommodation and paying rent. This house shouldn’t be co-owned by you and also you don’t own any house in the same city.