How do I claim HRA when living with parents in rented house?
Documents required to claim the HRA while staying with parents. Rent agreement and rent receipts – Usually employers ask for a copy of the rental agreement for their records. They can also request submission of rent receipts to allow you HRA exemption. You can enter into a simple rent agreement with your parents.
How do I claim HRA when living with spouse?
A taxpayer is entitled to claim the HRA exemption for rent paid to his or her spouse provided there is documentation to prove that the arrangement is genuine. Neither the Income-Tax Act, 1961 nor the Income-Tax Rules, 1962, prohibit claiming HRA exemption on the rent paid to one’s spouse.
Can HRA be claimed if I own a house?
One can claim HRA exemption as well as the deduction for interest on a home loan if one owns a house but lives in a rented house. Both these tax deductions are allowed only if the house one owns and the house one lives in are at different locations and there is a genuine reason for not living in one’s own house.
Can I rent from my parents and claim housing benefit?
You must be renting on a commercial basis to get housing related benefits. This usually means you have a legally binding tenancy agreement. Your family member doesn’t have to make a profit from renting to you. It can still be a commercial letting even if you’re charged below the usual market rent.
Can I rent my house to my son?
Renting to family members There is nothing to stop you renting a property to family members, although some mortgage lenders see this as higher risk than a standard buy-to-let, as the owner is likely to be more lenient about late rent, and so on.
Can HRA be shared?
Yes, there is no restriction on claiming HRA benefit by both the spouses. If you and your wife both are paying the rent then both can claim HRA benefit separately for the respective share. Total rent claimed by both of you cannot exceed Rs 20,000.
Can I pay house rent to my wife and claim HRA?
Legally speaking, 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.
Can husband and wife both claim HRA?
Though HRA is included in the basic salary, it’s not fully taxable. You can claim tax deductions on it. To optimize the tax-benefits from the HRA exemption, you can split it with your spouse. If both the husband and wife are in the same tax slab, then the rent paid can be split 50:50 to enjoy higher tax savings.
Can my mom claim housing benefit if she lives with me?
Renting from a close relative who you live with If you live in the same home, you cannot get housing related benefits to pay rent to your partner or any of the following close family members: parents – including step parents.