Can I pay my mother and claim the sum under the HRA?
To be on the safer side to avail HRA from your employer, ensure that there is a proper documentation
I live with my mother, who owns the house. I wish to pay her money every month for her expenses. Can I claim this sum under the HRA?
Gurpreet Chaddha, Noida
The tax authorities are getting strict on taxpayers availing tax benefits on grounds that are not grey. To be on the safer side to avail HRA from your employer, ensure that there is a proper documentation stating your relationship with your mother as the house owner and you being a tenant. Provide your employer Form 12BB which is declaration which specifies your mother’s name, address and permanent account number (PAN) to avail HRA benefit. Remember, if the rent that you are paying exceeds Rs 1 lakh annually, the PAN is a must.
Prepare the right documents with you as the tenant and your mother, the house owner receiving the rent. You could also include a rent agreement if the value of the HRA you are claiming is high, to avoid any future scrutiny or questioning. Likewise, ensure that the money that you are claiming as HRA is actually paid to your mother and is not just for an entry.