Rent to Parents — HRA Viability Checker

Does the parent own (or co-own) the property you are renting?

s.27 defines deemed ownership. If the property is jointly held with the employee, the HRA claim fails — you cannot pay rent to yourself.

Do you actually live in that property (not subletting back)?

The arrangement must be a genuine landlord-tenant relationship.

Is rent paid by bank transfer or cheque (not cash)?

Cash is unverifiable and invites disallowance.

Is the monthly rent above ₹50,000?

If yes, TDS u/s 194-IB applies — deduct 5% and deposit via Form 26QC within 30 days of the end of the financial year.

Will your parent declare this rent in their ITR as House Property income?

Parent must declare rent under s.22/24. Deduction: 30% standard deduction u/s 24(a), plus municipal taxes. If the parent is in the Nil/5% slab, the family saves overall.

Is there a written rent agreement?

Not legally mandatory, but strongly advisable — absence invites scrutiny.