Hi Folks, I am doing WFH and living with my parents in a small house in a village. I have HRA component of nearly 1.5L, can I claim HRA? since I am not paying any rent, is there any way to utilise this? Heard I can pay rent to my parents. Is it true? If true can I pay 15000 per month and claim HRA? Will there be any problem since I am living in village and showing as paying 15k per month to my parents l???

Thanks in Advance

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Rental amount is ok, company shouldn't and wouldn't question that why are you paying so much of rent at your location. But that income would reflect in your parent's ITR since now you're liable to share the PAN of your parent whom you're showing as paying the rent to.

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You need PAN card of your parents to apply HRA more than 1 Lakh. Better transfer 8200 per month to your parents account and apply HRA

Thanks for your reply. My parents are not earning so if I declare 15000 PM and submit my parents PAN will that be around 1.8L which is less than 5L so there is no need of my parents to declare it right? Is it legal?

Its legal so no issues even if they find out only document works in india

This thread has all the answers you are looking for
https://joinfishbowl.com/post_34gdav5az9

Thanks it is really helpful

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HRA exemption is lower of your actual rent, actual HRA or 40-50% of your basic depending on tier 1/tier 2 city. so first check that and then do accordingly. So for example if your minimum exemption limit is 1.2 lkh, there is no point in showing 1.5lkh to parents

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