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rent paid to dad - hra allowance claim


Dear Experts,

My father has taken an two storied house on lease and the first floor is being used me, wife and kids.

We are paying a rent of 20k per month to dad. Can I claim the rent paid to Dad as HRA Allowance  ? since it is within family

Also how he should treat the income, rental income or income from business.

Thanks & Regards,

Karthik

 

 

 
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Advocate

I do not think that your father has right to sub-lease the property.

Therefore, I do not think that you have any lease agreement with your father.

All that you are doing is that you are contributing to your father to meet part of the lease rent.  That will not mean that you are paying rent.

Since it is only a contribution, it is not income in the hands of your father.

Further, unless your father is in the business of leasing, and he has entered into any sub-lease agreement with you, he cannot treat the same as his business income.

 
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The lease agreement has sub let clause. And he made a rental agreement with me when the previous tenant left the house.
 
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Advocate

If that be the case, then you can claim Rental payment against receipt in connection with your HRA.

In your father's hands, it will be income from house property.  He will be entitled to a deduction of 30% from the rental income received from you.  On the remaining balance, he has to pay income tax.

 
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Thank you experts.
 
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