Claim HRA when living with parents

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Hi,

How employee can claim HRA when living with parents? What are points to keep in mind while claiming HRA exemption?

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It happens.

Observed that a single owner may own multiple apartments in cities like Bengaluru and many times children when married would be living with their parents or occupying one of the apartments of their parents. They may or may not pay the rent.

Here are a few aspects to be considered if planning to prove that you are paying rent to your parent.

  1. If you are living with parents and wanted to claim HRA exemption, make sure that you make payment and got the payment records
  2. The property shall be owned by your parents
  3. Rental agreement, rent receipts, and PAN of the owner (if rent exceeds more than 1 Lakh a year)
  4. Your parent may become liable to pay tax for the rental income
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