Table of Contents
Is rent paid to parents taxable?
Rent paid by you to your parents shall be taxable for them. The rental income paid by you is to be reported under the head ‘income from house property’ in their Income tax return. However, they can claim property taxes paid by them and also claim a 30\% standard deduction from this rental income.
Can we show rent paid to parents?
1) You can pay rent to your parents and claim HRA deduction if your parents own that property. But they will have to show the rent as income from house property. But if you are staying with your parents in a rented accommodation and they are paying the rent, you can’t claim the HRA deduction.
Can I pay rent to my grandfather and claim HRA?
You can pay the rent to your grandfather for staying in their house. Yes you need to save the documentary proof like receipt, agreement and make the bank transfer as if the payments are to any third person. ALso, ensure that your grandfather reports the transaction / income in his tax filing.
Can I pay rent to my spouse and claim HRA?
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 you pay rent to parents and claim HRA?
Can You Pay Rent To Parents Or Spouse And Claim HRA Benefits? 1) You can pay rent to your parents and claim HRA deduction if your parents own that property. But they will have to show the rent as income from house property.
Do I have to pay rent to my father and mother?
If the property is jointly held by your father and mother then you should pay rent to both of them. Please note that this rule is only for parents. Rent paid to spouse does not qualify for HRA exemption. Reason being, as per income tax department you are suppose to stay with your spouse.
Should a property be in the name of a parent?
(a) Property should be in Parent/s name: Now it is imp to note that you can save tax only if you are paying rent to parent/s who is owner of the property. If the property is jointly held by your father and mother then you should pay rent to both of them.
How much tax will I save if I Rent my parents house?
From family perspective, tax on rental value will be 10\% instead of 30\% thus you will save tax to the extent of 20\% on rental value. Best possible scenario is when parents house is in joint name or they don’t have any other income source. In this case, income will be exempted till basic limit.