Hello Friends
Can any one tell me with reference to provisions :
1. Whether there can be any rent agreement between mother and son ?
2. Whether HRA exemption is available, if son pays rent to his mother?
Thanks
Sumit Aggarwal
the answer to both above questions is "YES"
there is no bar in any law for the time being that prohibits such a transaction. the only condition is that the houe owner must be mother that is the house is owned or purchased by mother. It should not be ancesteral.
2nd thing is that HRA : look is son actually pays rent to mother and obtains a reciept and also is rent is above TDS limit the son deducts TDS then as per law HRA is allowed as per rules.
but this is a tax planning tool IN most cases its being done ACTUALLY its not tax planning but Tax evasion tool whereby mother is not dependant upon son and son pays rent (it is totally unbelievble).
bye
CAclubindia
