Income tax deduction
(Querist) 26 January 2022
This query is : Resolved
I am moving to Bangalore from my home town and looking for a 2BHK accommodation.
Renting out a 2 BHK would cost me 22k per month, while leasing the apartment would cost 8 to 10 lakhs.
My father has suggested to take it on lease and he will fund it. With this I will not be able to take any HRA deduction, since I am not paying rent.
Can I create a rental agreement with my dad and make rental payment and take claim HRA deduction?
If so, how should I report this income in my Father's ITR.
(Expert) 27 January 2022
When you are taking a lease from your father actually without paying rent may lead to violation of service rules if it knows to your department. For Income Tax purpose, consult a local CA.