• HRA

I stay in a house owned by my grandfather (along with my grandfather and grandmother)
1.Can i pay the rent to my grandmother (for the same house)?
2.Any documentary proof like rent agreement,chrque,online transaction details are required?
Asked 5 years ago in Income Tax

Hi,

Hope you are doing well !

1. Yes, you can. Since rent is paid to owners, the property must be owned by your grand parents. It may be owned by one or both of your grand parents. Remember that you cannot be an owner or co-owner of this property.You can do this by transferring rent to their bank account or pay via cheque. This way you will be able to support your HRA claim properly

2. Usually employers ask for a copy of rent agreement for their records. They can also request for rent receipts to allow you HRA exemption. You can enter into a simple rent agreement with your grand parents. You can prepare rent receipts also.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Hi,

- Yes you can pay rent to the owner of the house. If grandmother is a sole owner then there is no problem. If both are owners then it will be divided as per the ratio in the registered deed.

- It is advisable to draft a proper rent agreement for it, do the payment through banking channels only. Submit rent receipts to the HR of your company.

- Show the rental income in the ITR of the grandmother.

Thanks

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

Hi,

1. Yes. You can pay the rent to your grand father.

2.Yes.Please make sure that a proper rent agreement is executed and transfer the rent payment through banking channels only. Also, prepare the rent receipts and submit the same to the HR of your company and show the rental income in the ITR of the grandmother.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Yes you can. Just ensure that you have a proper rent agreement in place and the rent is paid via banking channels. These will help you to claim HRA.

Since you want to pay rent to your grandmother, I am assuming that she is the owner of the property. If its a joint property, my suggestion is to divide the rent and pay to all the owners in the proportion in which they own the property.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

If the house is owned by your grandfather, you can pay rent only to your great.

You should have proper rent agreement, payment proofs and receipts etc.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

Rent has to be paid to your grandfather only as he is sole owner of property.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

You can pay the rent to your grandfather for staying in their house.

Yes you need to save the documentary proof like receipt, agreement and make the bank transfer as if the payments are to any third person. ALso, ensure that your grandfather reports the transaction / income in his tax filing.

Jasmina Jain Shah
CA, Greater Mumbai
454 Answers
4 Consultations

5.0 on 5.0

To grandfather only.

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

To grandfather only.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Grandfather only.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

rent needs to be paid to your grandfather as he is the owner and you would obviously require rent agreement and cheque especially since they are your relatives.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

How does paying grand mom impacts you. Is it possible that you buy something form X and pay to Y. It is advisable to pay to the person from whom you have rented the property.

Jasmina Jain Shah
CA, Greater Mumbai
454 Answers
4 Consultations

5.0 on 5.0

Hi

In order to claim HRA, you need to pay the rent to your grandfather through banking channels. Also, execute a rent agreement.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

Hi

Since grand father is sole owner so you can pay rent to grandfather only.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

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