Want to know how to claim HRA Tax Exemption? then read this full post and claim HRA Tax Exemption in Income Tax surely.
Yes, you are able to pay rent to parents or spouses to maintain Indian HRA Tax Exemption in Income Tax. The paid lease is counted as a partner or parent earnings. Document ITR.
Yes, you are able to pay rent for your spouse or partner or parents to maintain that the HRA tax advantage in India.
In the view of Income-tax, every person is another thing and hence could have his very own income.
You may pretty well pay the lease to your partner and maintain the HRA Tax Exemption in Income Tax on the earnings.
ALSO READ: House Rent Allowance – New HRA Exemption Rules & Tax Deductions 2020
Rent Is Income of Wife/Parents and you can claim for HRA Tax Exemption in Income Tax
The only aspect to consider is the rent paid must be counted as INCOME for your partner or the parents.
If your partner or parents don’t have any other revenue source, then that INCOME (leasing ) could be quite beneficial. On the flip side, they may not even cross the minimal income tax slab to be asked to cover any tax. Presently, individuals with a total annual income of INR 2,50,000 shouldn’t pay any income tax.
On the flip side, you’re claiming tax exemption with this lease volume.
In this manner, the tax-saving stays within the household.
If you want to use HRA Calculator then navigate to this site:
https://www.incometaxindia.gov.in/Pages/tools/house-rent-allowance-calculator.aspx
FAQs (Frequently Asked Questions) For HRA Tax Exemption in Income Tax
Can I pay rent to myself for self Occupied Home?
If you’re staying in the house that you have, then you can not demonstrate the lease as paid to yourself. This isn’t permitted according to the Indian taxation law.
How to Prove Rent Paid to Wife or Parent?
If you’re paying rent to your parent or partner, there should really be a legitimate transaction (Bank payment is chosen ) that reveals the circulation of cash from the account to your own accounts.
ALSO READ: Gift Tax In India – New 2020 Rules of Income Tax on Gifts
Documents Required for Showing Rent Paid to Family Member?
You will need the files like lease receipts along with a legitimate rental agreement to demonstrate lease payments involving you and your household member.
This could be required in the event the income tax officer queries your own goal.
A lot of men and women who remain with their in-laws may make a documented lease agreement and keep paying the lease to their mommy or father-in-law.
Can I pay rent to my wife how is a joint owner in self-occupied property?
It’s possible to lawfully pay rent to your own wife even when she’s a joint owner in the house. The only point to notice is that she is able to get rent just for the section of the house she owns.
For example, if your spouse owns 50 percent of their property rights, then she could simply receive 50 percent of their entire market lease rate for this property.
Be aware that although you claim HRA Tax Exemption in Income Tax utilizing this technique, it’s actually hard to demonstrate it into the Income-tax auditor should they opt to look at your situation.
Typically, your employer might also not accept yourHRA Tax Exemption in Income Tax claim in case you can’t produce rent receipts together with PAN number.
Can we claim HRA Tax Exemption in Income Tax and home loan tax benefits together?
Yes, you are able to maintain income tax exemption on both home lease allowance (HRA) and repayment of the mortgage. In case you have been dwelling in a home on lease and servicing a mortgage on a different property – even though both properties can be found in precisely the exact same town – it’s possible to claim tax advantage for the two.
ALSO READ: Unexplained Cash Credit (Section 68) Tax Treatment
