06/04/2026
Paying rent to parents and claiming HRA? Please don’t treat it casually.
In many cases we are seeing, especially around AY 2024–25, rent claims are no longer looked at only from a receipt point of view. The department is increasingly looking at whether the claim is genuine, consistent, and properly supported.
Rent paid to parents is allowed, but only when the arrangement is real and can stand basic verification. In practical terms, this means:
a. there should be a proper rent understanding / agreement
b. payment should ideally happen through bank / UPI
c. the property and occupancy should make sense
d. the rental income should be appropriately considered in the landlord’s tax position
Where these are not in place, the issue is not just HRA rejection — it can also lead to tax demand, interest, and avoidable questions later.
This is a good time to review such claims properly before the next filing cycle.
