I am a working woman residing in my father’s house as a tenant. What steps do I have to take to claim tax deduction on the rent paid? Is my father liable to pay tax on the entire rental income? Also, can he claim tax deduction on maintenance of the house (the house is self-occupied with no other tenant)?
—B Mukherjee
If you are employed and are in receipt of house rent allowance (HRA) from your employer, you can generally claim an exemption in respect of rental payments made by you against such HRA. While rental payments to a parent are not specifically prohibited, rent paid to relatives may be more prone to scrutiny and litigation and the genuineness of the claim can be questioned.
