If wife pays rent to your mother that is admissible for tax rebate but she need to pay the rent by bank transfer to prove the payment as the property belongs to you as well.
Clarity regarding within family rent payment
Hi, I recently got married and wanted to know if my wife can pay rent to her mother in law and get tax rebate on rent paid. The flat is in the name of me (her husband) and mother in law. We will follow all required legal procedures like getting a rental agreement made and doing an online rent transaction.
Asked 8 years ago in Family Law
Religion: Hindu
13 Answers
Also my Mother is a house wife and considering the rent paid would be less than 2.5 lakhs (non-taxable limit). Does she need to do any kind of income declaration?
Asked 8 years ago
No issues, she can earn income and file tax return if necessary and consider Income from House property as per the provisions of the Income Tax Act.
1. The rent paid to the person to which her husband is a co-owner will not attract an savings as far income tax is concerned.
2. Your mother;s earning if remains below the threshold limit then disclosure of income is optional.
1) you are co owner of the flat
2). There is no necessity for wife to pay rent to mother in law when husband is co owner of flat
3) if your mother was sole owner of flat then rent could have been paid to her by your wife and tax rebate claimed
If your mother income is less than 2.5 lakhs per year no need for mother to file income tax returns
Your wife can claim tax exemption for the rental agreement of the house where she resides. It should match with address provided in official records. Your mother can file nil return in case of holding PAN.
1) Yes As stated by you the flat is in name of your mother and your wife can get tax rebate by paying rent to her mother in law at home, but you have to file separately for asking this rebate.
2) do not show joint family husband and wife combined income.
3) you can make the legal rent agreement between them.
If the same will be less than 2.5 lakh and she happens to be a house wife then there is no need for your mother to do any kind of income declaration
And yes legally daughter in law can pay rent to the mother in law, get a rent agreement between the two for the same.
Regards
Dear Client,
Above proposition is permissible if house in on mother`s name and can file return,no tax levied.
In ur case no exemption allowed.
This rule is only for parents. Rent paid to spouse does not qualify for HRA exemption. Reason being, as per income tax department you are suppose to stay with your spouse. In short, you cannot save tax if you are paying rent to your spouse. Needless to say, if you are staying in own house i.e. self occupied then you cannot claim HRA exemption
hi, yes she can do
There is nothing wrong in she paying rent for the house taken on rent.
She can claim tax benefits also.
Also my Mother is a house wife and considering the rent paid would be less than 2.5 lakhs (non-taxable limit). Does she need to do any kind of income declaration?
If she is not coming within the tax bracket, she may not be required to file returns