How to Save Tax by Paying Rent to Parents? || bekifaayati #Shorts

If you live with your parents in a house owned by them, you can claim House Rent Allowance tax exemption by paying them rent.

You can claim HRA deduction equivalent to the least of the following:

-Actual rent paid or
-Basic pay minus 10% of rent paid or
-50% of the salary; if staying in a metro or 40% of the salary; if staying in a non-metro.

If you pay rent to your parents, you will be able to:

-Save tax as a family

-Your parents can deduct property taxes and also claim 30% standard deduction on the rental income. If they are in a lower tax bracket than you, the family can save tax as a whole.

-If they are more than 60 years old, they will also enjoy a higher minimum income exemption limit - Rs.3 lakh for those who are aged more than 60 years old and Rs.5 lakh for those who are aged more than 80 years old.

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