Hra exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2012 Can rent paid to mother in law be allowed in HRA exemption if the house is in the name of husband?

Amol S Joglekar

Amol S Joglekar (Expert)
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17 December 2012 As an employer one must draw its own line of VERIFICATION; without hampering the principle of "true and fair." Telling LIE on the face of it should not be permitted in any case.

@VaibhavJ

@VaibhavJ (Expert)
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17 December 2012 Agreed with Amol.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Rent Paid to parents is allowed so if it is paid to mother in law is it allowed if house is in the name of husband

@VaibhavJ

@VaibhavJ (Expert)
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17 December 2012 Hi,

Only owner of the property can be paid rent, so in this case since mother in law is not an owner she can not claim rent on said property.

On the other way you can pay rent to your father in law & claim HRA exemption.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 So if father in law or mother in law are owners of the house rent paid by daughter in law to them will be allowed for HRA exemption??

@VaibhavJ

@VaibhavJ (Expert)
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17 December 2012 Yes, but you should prove when asked for with evidence of payment of proof.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Also if the house is jointly owned by husband and father in law house can be shown partly let out?? if there are proper evidences

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Amol S Joglekar

Amol S Joglekar (Expert)
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18 December 2012 Whether "father in law" OR "mother in law" shows this rent as INCOME? This is where the question of "drawing its own line of verification" by the EMPLOYER creeps in. In such cases employer should take a DECLARATION from the employee amounting to INDEMNITY.

@VaibhavJ

@VaibhavJ (Expert)
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18 December 2012 hi

when relation of husband & wife subsist rent payment between them can not be allowed, since your property is jointly owned, then giving benefit of doubt; rent paid to father in law could be allowed. Also it depends upon the fact & circumstances of the case.

thanks