Income tax on rent

I am been paying rent to my mother last year 180000 and this year 210000 . should she declare her income and also whats the tax bracket she falls in . Whats are exemption available for her. She does not have a pan card.

What are the documents that i should keep handy when taking exemption while paying rent to parents

She is a teacher with annual salary of 180000.

Thanks in advance
Asked 9 months ago in Income Tax from Bangalore, Karnataka
Hello Sir, Basic exemption limit for an individual is Rs. 250000/-. In case of senior citizen I.e age above 60 years it is Rs. 300000/-.
If she is a salaried employee then you should show her salary income and rent income with interest Income, if any. You should apply for pan card first online and start filing the returns. 
As you are paying rent to your parents showing it in their return is necessary and should keep document executed between both of you duly signed on revenue stamp and payments through bank account. 
Please let me know if any further query. Thanks 
Bhagyashree Kankaria
CA, Pune
26 Answers
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Firstly you get PAN card for your mother. 

Also if her income is above the tax limit then she need to file tax returns. As per your inputs it looks that she is above tax bracket. Thus we suggest to file her returns .

Shyam Sunder Modani
CA, Hyderabad
955 Answers
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yes do it before 31-03-2016
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Last year :

Total income of your mother [180000+70% of 180000] = 306000..You can tae deduction of LIC, PPF, mediclaim etc
In case your mother do not take any exmpetion, she has to pay tax of INR 3708 plus interest thereon

Current Year :

Total income of your mother [180000+70% of 210000] = 327000..You can tae deduction of LIC, PPF, mediclaim etc
In case your mother do not take any exmpetion, she has to pay tax of INR 5871.

We can help you in filing your mother's return and pay taxes.

Further, we suggest you to keep following documents for HRA : 
1. Rent agreement 
2. Rent Recipts
3. Amount should be preferably paid via bank(NEFT/RTGS/Cheque)

None of the above three documentation requirements are hard and fast. You should adhere as much as you can.

Please feel free to get in touch with us

Regards
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
773 Answers
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Dear Sir,

Please apply for a PAN first as that is the most important document to start with.

After applying for a PAN you can file your Mothers return and pay the due taxes. Do not worry as it can be done before 31st March 2017 assuming that your last year was FY 2014-15. You will only be charged an interest on the amount of Tax payable.

In case you need any assistance for filing of returns, we will be happy to help.

Trust this clarifies your query. 

Feel free to get back/ call back for any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
719 Answers
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If in Your salary break up, HRA also includes then you can take benefit of section 10(13A) otherwise go for section 80GG and take benefit 0f 60,000 per annum from current Financial Year

Handy documents are

Rent slips paid
Form 10BA declaration 
Deepak Rathore
CA, New Delhi
23 Answers
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