Aren`t you sure how you`re going to claim HRA when you live with your parents? If you are unable to provide supporting documentation to your employer on time and your employer withdraws TDS from HRA, you are still insured. HRA exemptions can be invoked when you file your income tax return. You can adjust your entire taxable salary with the HRA exemption amount while you file your tax return on ClearTax. Don`t forget to keep your vouchers (rental receipts and rental agreement) safely if the expert requests it later. Those who live with their parents can pay rent to their parents and save taxes on HRA. If the landlord does not have a PAN number, then these two documents are required by the landlord so that you can apply for the HRA exemption: pay the rent – you can pay rent to your parents by paying money into their bank account or by paying by cheque. This way, you can properly claim your HRA deduction. If the annual rent exceeds 1.00,000 USD per year, the worker must receive the owner`s PAN card. If the landlord does not have a NAP, you should get an explanation containing details such as the owner`s name, address, the amount of rent you pay and the length of the accommodation. HRA or home rental allowance is the most common allowance received by employees. Those who live off rent can save taxes via HRA. Rental income is taxable for parents – the rent you pay your parents is taxable for them. They will include this income under the head of “Deminhouse Revenues” on their tax returns.
They can claim the property taxes they pay and claim a standard deduction of 30% of that rental income. Home ownership – Since the rent is paid to the owners, the property must be the property of your parents. It may belong to one or both of your parents. Remember that you cannot own or co-own this property because you cannot claim a tax exemption for the rent paid to yourself. You must post the rental receipt required for the rent each month between 3001 and 8333 per month. Each HRA rental receipt must have 1 rupee turnover stamp with the owner`s signature. Forged rental income can be taken by income tax officers and you may have to pay penalties with the income tax due. Yes, both can be claimed. The home rent allowance has no influence on the deduction of interest on the home loan. Let`s take Case 1, where Aditya decides to pay rent to her father, a sum of 12,000 times a month.