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sagar (Worker)     20 January 2012

Hra + gpa = legal?


Hello Sir,

I'm in tax slab of 20% and i own a property and stay in it.

To cliam the HRA one has stay in rented house, so can i execute GPA in my mother name to give her right to collect the rent. Now  after my mother becoming GPA holder, can i pay rent to my mother (who will be GPA holder to collect rent) and claim tax excemption. I will also file tax return for my mother also. As this is only income for my mother, she is will be excempted from tax slabs.

Does this GPA need to be registered?? or stamp paper with franklin is sufficient?

Looking fwd for your opinions


 2 Replies

sagar (Worker)     20 January 2012

Hello sir/madam,


Can any one please answer my query.


Vineet (Director)     21 January 2012

What do you mean by GPA. Are you owner of property in which you reside?


GPA holder collects income on behalf of the owner, he does not become the owner himself. So by executing this GPA you cannot pay rent to yourself. It is a sham transaction.


You have to transfer property to your mother. Then only you can pay rent to her and claim deduction for HRA. But will you??


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