• Claiming HRA while living with a relative without paying rent

My sister is in state government service. She is unmarried and living with my parents in Bengaluru for the last 30 years and her posting was also in Bengaluru all these years; the house is a self-earned property of my father. Although she was drawing HRA all these years, she never volunteered to pay any rent nor did my parents ask for it. She alone stayed in the house with my parents, did not look after them and did not allow any siblings(including me) to visit my parents.
My questions are:
1. Is it legal to claim HRA while living with parents and not paying rent or any other maintenance charges like electricity, telephone bill, property tax, etc. nor for household expenses?
2. Can details of HRA claimed be obtained from RTI?
3. To whom should we complain?
4. Is there a possibility of recovering the past rent by a legal suit from her HRA kitty, which she says has been saved in a separate bank account?
Asked 8 years ago in Labour

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4 Answers

1) it is not legal to claim HRA and not paying any rent

2) your sister should pay rent to parents , collect rent receipts and then only claim HRA

3)Usually employers ask for a copy of rent agreement for their records. They can also request for rent receipts to allow your sister HRA exemption

4) complain to employer against your sister

5)govt can take disciplinary proceedings against your sister for claiming HRA

6)inform your sister that you would complain against her if she does not reimburse the money to parents

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. Whose property it was anyway, if it was on your father's name then he only should have demanded the rent.

Please be informed that it is the duty of the father maintain his wife and his unmarried daughter.

2. The personal details cannot be shared through RTI act.

3. There is no complaint maintainable in this, because whether she is staying in her own house or in a rented house she is eligible for HRA hence she is availing the same. The stretch of your imagination will not find any solution in law in this regard.

4. The owner of the property only can initiate any process and that too not beyond three years. She being daughter and that too an unmarried daughter to your father, she has rights to live in that house and legally she cannot be instructed to pay rent for her stay in the house.

If your father is not able to maintain himself, he can file a maintenance case against not only her but also against you and all other children

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

unable to find HRA rules for class1 officers online

an employee can also stay in the house owned by his parents and pay them rent. The rent paid by the employee to his parents is also eligible for calculating HRA exemption. However, the parents need to add such rental income along with their other taxable income in order to pay tax if any on the rent received by them from their sons or daughters.

3) in your case your sister is staying in parents house and not paying any rent she cannot claim benefit of HRA

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

HRA is the most important factor of allowance issuing to existing Central Government employees, it is given for compensate to live in rented house. The HRA rules are allowed for getting allowance even if he/she living in own house.

"Year Book for Central Government Employees" is the title of the concept book to be published by the Management & Administrative Training Academy (MATA) for the Central Government Employees regarding various rules, mainly FRSR and CCS Rules which govern their service conditions.

You can refer the above book for further details.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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