Hi, I am a working professional based out of Hyderabad. however My wife stay with my parents in lucknow in a property owned by my mother. I am paying house rent to my mother as my wife is staying with her (as she is retired and this amount acts as her maintenance.) the rent amount i pay to my mother is far more than what i pay in hyderabad. I would like to know can i claim the rent paid to my mother under HRA, I am fine letting go my hyderabad rent (will calim one of lucknow) Can it be done, if yes, what are the nuances i should be ware of Thanks Nitin
Dear Nitin,
Hope you are doing well !!
You can pay rent to your parents and claim HRA deduction if your parents own that property. But you must physically reside in the house mentioned by you while claiming HRA exemption.
Thanks for your reply. I cannot pay also since my wife is staying with them? and lets consider, if my wife was staying in another city eg delhi can i pay rent for her stay there and claim exemption
Hello,
The rent paid to parents won't be eligible for HRA deduction since you are not residing in their house.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
In that case, also, you won't be eligible to claim the deduction for your wife's rent. However, your wife can claim either HRA deduction or deduction under 80GG, if HRA is not provided.
You can not claim HRA for rent paid to your wife or mother. It is only for your accommodation and that at the place of service.
No, you can not claim exemption without reside in the house mentioned by you while claiming HRA exemption.
10(13A) doesn't allow to claim deduction for rent paid for your wife when you are staying in Hyderabad.
For reference: any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent [by whatever name called] in respect of residential accommodation occupied by the assessee.
It clearly mention exemption available for accomodation occupied by assessee.
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Thank you
Hi Nitin
No, since you are staying in Hyderabad and paying rent there, you can claim HRA in respect of rents paid on Hyderabad.
HRA deduction is allowed only in respect residential accommodation occupied by the assessee himself.