How to claim HRA tax benefit when staying with parents?

Asked 27 Feb 2026·6543 views

I live in my parents' house in Delhi and pay them ₹15,000 per month as rent. My company provides HRA of ₹20,000 per month in my salary structure. My parents own the property. Can I claim HRA deduction? What documentation do I need? Do my parents have to declare this rental income? Will they have to pay tax on it or register for GST?

Asked by Rajesh Kumar

2 Answers

Yes, you can claim HRA deduction even when paying rent to parents. Your parents must declare the rental income in their income tax return. Since the property is self-occupied, rental income is taxed under "Income from House Property" and the notional rent is added to their income. However, they can claim a standard deduction of 30% on the rental income and also deduct property tax paid. Your HRA exemption will be the minimum of: (a) actual HRA paid, (b) 50% of salary (if Mumbai/Chennai/Kolkata/Delhi) or 40% for other cities, or (c) rent paid minus 10% of salary.

Answered by Priya Sharma · 3 Mar 2026

Your parents do not need to register for GST because residential property rent is exempt from GST (as of current rules). They should issue you a rent receipt each month with their PAN details. You will need rent receipts, your parents' property ownership proof, and a rental agreement (even if verbal, have a written one) for HRA claims.

Answered by Vikram Mehta · 3 Mar 2026