CA Sakchi Jain Instagram – Save taxes by paying rent to your parents!!
[ Instead of paying cash you should prefer doing a transaction through a bank account ]
To pay rent to your parents, the property must be owned by them. It may be owned by one or both of your parents and you must also sign a rental agreement with your parents.
So if you are living with your parents, you have save taxes by paying rent to them!
So, you can deposit the money to any one of the parents in case of joint house ownership, or to the parent who is the legal owner of the house.
We need to keep in mind that your parents will be required to pay taxes on the amount you pay them as rent. This income will come under ‘Income from House Property’ and will be included in the taxable income of your parents.
So if you are an employee can claim HRA benefit if the employee pays the rent to the parents and taxpayers living with their parents can claim deductions under Section 80GG.
[Rental agreement, 31st March, TAX saving, should we pay
rent to your parents, how to save tax by paying rent, rental income, income from house property, taxable income, CA Sakchi Jain]
#casakchijain #rentalagreement #rent #parents #houseproperty #incometax | Posted on 27/Mar/2024 19:00:59
