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Rediff.com  » Getahead » House rent and tax benefits

House rent and tax benefits

By RelaxWithTax
July 25, 2006 10:27 IST
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You have a question about house rent allowance, medical allowance or even a general tax query.

Here's where we step in with our experts, Relax With Tax.

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I currently stay in a rented house and pay house rent every month. I also send Rs 6,000 every month to my parents who stay in another city. This is for the rent of their house.

Can I take tax exemption for this money under house rent or any other head?

- Vivek Koranne

Let's say that you are living and working in city A. You can claim the exemption on account of House Rent Allowance. This is for the rent that is being paid by you currently in City A - the place of your employment.

The amount you pay to your parents (Rs 6,000 per month) is merely an application of the income you earn. This is not eligible for any deduction or exemption from your income.

You could be giving them Rs 6,000 to pay the rent, to clear a home or just as pocket money.

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Illustration: Dominic Xavier

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