Harun Raaj & AssociatesHarun Raaj & Associates

Claim audit · FY 2026-27

Pay rent to your parents and claim HRA

LegitAudited: 2026-08-09

The condition that decides it

Legit only with a genuine tenancy: parents own the house, rent actually moves by bank transfer, they report it as rental income, landlord PAN declared above ₹1L/yr. Exemption is capped by the least-of formula u/s 10(13A)/Rule 2A. Paper-only arrangements fail scrutiny.

What the department sees

Landlord PAN on Form 12BB, parents' AIS/ITR cross-match

Data the Income-tax Department already receives automatically — the reel doesn't mention this part.

The real math

The claim is legitimate only if the tenancy is real and the section 10(13A)/Rule 2A least-of formula is applied. For illustration, if annual rent is ₹3,60,000, the relevant salary component is ₹8,00,000 and the qualifying city condition produces a 50% salary figure of ₹4,00,000, one candidate is rent minus 10% of salary: ₹3,60,000 − ₹80,000 = ₹2,80,000. The exemption is the least of the formula outputs, so the final amount is fixed only once the salary components and city (metro vs non-metro) are known. Parents must own the house, receive the rent through bank transfer, report rental income, and landlord PAN is declared above ₹1 lakh per year. A paper arrangement produces no defensible arithmetic. The reel implies a simple family payment creates a deduction; the statute produces an exemption only for genuine tenancy and the least-of cap.

Questions people actually ask

Can I claim HRA by paying rent to parents?

Section 10(13A) can allow HRA where parents own the home, rent is genuinely paid, and they report rental income; Rule 2A’s least-of formula caps the exemption.

Is landlord PAN required for parent rent?

₹1 lakh per year is the landlord-PAN declaration threshold. Keep ownership, rent receipts, bank transfers and parents’ reporting aligned.

What if the rent agreement is only on paper?

Rule 2A relief is not supported by a paper-only arrangement. Actual tenancy, payment and landlord reporting are required.

Sections: 10(13A), Rule 2A · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims