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HRA: How is it calculated, and more

April 9, 2009

On paying rent

It is not essential that you should pay rent only to a landlord to avail your HRA benefits. You can pay rent to your parents or your spouse to claim tax benefits.

However, they need to account for the same under ‘Income from other sources’ and will be entitled to pay tax for the same.

You need to submit proof of rent paid through rent receipts, for which only two need to be submitted, one for the beginning of the year and one towards the end of the financial year.

It should have a one rupee revenue stamp affixed with the signature of the person who has received the rent, along with other details such as the rented residence address, rent paid, name of the person who rents it, etc.

Also read: Net connection: The top 10 countries

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