HUF Rental Income

[Lav Prajapati]

Hello Expert,

I am a salaried individual, and my father is also salaried. My father has created a Hindu Undivided Family (HUF). I want to pay rent to claim HRA benefits under income tax provisions. However, the property in which I reside is owned by my father in his individual capacity, not by the HUF. My father is already in the 30% income tax slab.

My question is: Can I pay rent to my father's HUF (instead of paying it to my father personally) in order to claim HRA, even though the property is registered in my father's name and not in the name of the HUF? Is this arrangement valid for HRA purposes?

AI Summary

Tax Alert: Employee Cannot Claim HRA Deduction When Paying Rent to Father's Individual Property Not Held by HUF A salaried individual seeks advice on paying rent to a Hindu Undivided Family (HUF) owned by his father to claim House Rent Allowance (HRA) benefits. The property is registered in the father's individual name, not the HUF's. An expert advises that this rent arrangement would not be valid for HRA tax purposes, as the property ownership does not align with the proposed rental structure.