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Can HRA claim be made even by staying in the house of parents and wife? Know what the rule says

Income Tax Exemption on HRA: People use different tricks to save tax. Many people have their parents’ home in the same city where they have their jobs. In such a situation, he stays in the house of his parents or spouse and takes rent receipt by paying them rent like a landlord. He claims this receipt as HRA while filing income tax return. But, in such a situation, the biggest question is whether you can do this.

This condition has to be fulfilled
Let me tell you that you absolutely can do this. Hearing a similar case, the Income Tax Appellate Authority has ordered that any person residing in the house of his parents or spouse can claim HRA tax exemption through rent receipt. But, to take advantage of this claim, the person has to fulfill certain conditions. The condition is that the house is built with your parents’ money. If you prove this then you can easily claim HRA. If you fail to prove it, then you may get into big trouble later.

Court gave this decision
Similarly, a person in Delhi claimed for HRA tax exemption by submitting rent receipts while living in his parents’ house. But, Income Tax refused to give him exemption. After this the taxpayer reached the Income Tax Tribunal with his complaint. Hearing this matter, the Income Tax Tribunal Court ruled in favor of the taxpayer. Along with this, the court said that if any person is living in the house of his spouse or his parents, he can claim for HRA (House Rent Allowance) exemption. But, at the same time, the taxpayer will have to prove that the house is not made of your money and only your parents’ or spouse’s money.

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Earnings through rent will have to be shown
According to financial experts, if you are showing your parents or spouse as landlord, then in such a situation they will have to show the income earned by rent in their income tax return. Failure to do so may result in action being taken against them.


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