Claim audit · FY 2026-27
“Pay rent to your parents and claim HRA”
The condition that decides it
Legit only with a genuine tenancy: parents own the house, rent actually moves by bank transfer, they report it as rental income, landlord PAN declared above ₹1L/yr. Exemption is capped by the least-of formula u/s 10(13A)/Rule 2A. Paper-only arrangements fail scrutiny.
What the department sees
Landlord PAN on Form 12BB, parents' AIS/ITR cross-match
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The claim is legitimate only if the tenancy is real and the section 10(13A)/Rule 2A least-of formula is applied. For illustration, if annual rent is ₹3,60,000, the relevant salary component is ₹8,00,000 and the qualifying city condition produces a 50% salary figure of ₹4,00,000, one candidate is rent minus 10% of salary: ₹3,60,000 − ₹80,000 = ₹2,80,000. The exemption is the least of the formula outputs, so the final amount is fixed only once the salary components and city (metro vs non-metro) are known. Parents must own the house, receive the rent through bank transfer, report rental income, and landlord PAN is declared above ₹1 lakh per year. A paper arrangement produces no defensible arithmetic. The reel implies a simple family payment creates a deduction; the statute produces an exemption only for genuine tenancy and the least-of cap.
Questions people actually ask
Sections: 10(13A), Rule 2A · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims