Regarding hra exemption

Dear Aman,

No, it would not be right.

You can pay rent to your parents and claim HRA deduction if your parents own that property and you are staying with them. 

Hi Aman

That would be fine. Provided that you actually pay the rents to your parents and a rent agreement is executed.

However, you must also show the parents address as your current address with your organization.

Also, your parents must also show such rental income in their ITRs.

Dear Aman,

Hope you are doing well !!

When you are claiming HRA exemption it is assumed that you are also staying at same place. It is peculiar situation but to save tax, you should have valid justification.

Remember that you should save tax only through logical and transparent way.

Only suggestion from my side is that if you can prove that it is possible to travel daily from parents house to work place then you can claim HRA exemption on rent paid to parents. 

In order to avoid rejection of HRA exemption by your employer, it is important to complete documentation related to HRA to save tax. You should sign rental / leave and license agreement with your parents.

You should pay rent through cheque and don’t forget to take rent receipts for rent paid. It will make HRA exemption fool proof. You may submit all documents with your employer to claim HRA exemption.

Thanks & Regards,

Payal Chhajed

The communication from your office is correct.

You may either get the present address changed or make the rent agreement of the rented house in your name in order to get HRA exemption.

Yes, either declare your parents house address as your permanent address or change the rent agreement of the rented house and make it in your name.

Yes, they are saying correct.

Dear Sir,

For claiming HRA exemption, you have either of the two options:

1. Update your present address i.e mention your parents address

or

2. Change the rent agreement in your name.

The understanding of your finance team is correct. 

The contention of your finance department is correct that you can't keep 2 address.

On the other hand there is no harm in showing rent paid to parents and claiming HRA on same but the only condition is that there should be proper rent deed which should be at market rate and your parents should show such income as income from house property in their return of income.

As such income tax department won't check your present address and address mentioned for HRA in the company so you may take a chance and get it changed as soon as possible but the thing you are doing is not correct.

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

Thank you

1) As both the properties are not in your name therefore you can claim HRA exemption for both of them in single year subject to your period of stay in both the houses.

2) In the column present address, correspence address, you are required to fill one address at a time and get it changed when you move to another location. Leave the column permanent address blank.

Thanks

Hi

Paying rent to parents and claiming HRA is fine.Get rent Agreement executed with them.Also your parents house should be your present Address.

Yes,Your Finance team is correct here,In such case it is advisable to change rent agreement name to claim proper HRA .

Hope it helps