Business Standard

Are you paying rent to wife or parent? You can claim HRA exemption on it

Exemption can also be claimed on rent paid despite owning a house, provided a few conditions are met

House rent
Premium

Bindisha Sarang Mumbai
The Income Tax Appellate Tribunal, Delhi, recently ruled that House Rent Allowance (HRA) exemption under the Income-Tax (I-T) Act, 1961 cannot be denied on the ground that the assessee paid rent to his spouse. The ruling said that the wife is a doctor who possesses the resources to purchase a house, as is apparent from her income-tax return.  

Many such situations arise where it is not clear if a taxpayer is eligible for exemption on HRA.  

Rent paid to family members  

Suppose that you live in your parental house. Can you pay rent to your parents and claim HRA benefit?

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in