CA Himank Singla@CAHimankSingla
Let tax professionals do the talking on tax matters please! 🙏🏻
This is factually incorrect. There is no rule in tax law that disallows HRA exemption merely because rent is paid to parents. Rent paid to parents continues to be eligible for HRA exemption, provided the arrangement is genuine and properly documented.
What has actually changed in new Income Tax Act 2025 is documentation, not eligibility.
As per new Form 124, tthe focus is on transparency and record-keeping, not on discouraging family arrangements.
The key details now required include:
• Relationship with landlord (to disclose if landlord is parent or relative)
• PAN and Aadhaar of landlord (separate reporting fields)
• Annexures of:
✅ House Rent Agreement
✅ Loan Agreement (where relevant)
These requirements are meant to verify authenticity, not to deny genuine claims.
HRA exemption is available if:
• Rent is actually paid to any person.
• A valid rent agreement exists
• Payments are traceable
• The landlord must declare rental income in their Income Tax Return (very important)
