Yes, you can claim the HRA exemption on rent you pay a parent, as long as the parent owns the home, the rent is really paid and the parent shows it as income. The claim exists only in the old regime, so the real test is whether the old regime wins at all: at a ₹25 lakh salary it needs ₹8,00,000 of deductions beyond the standard deduction.

When does rent paid to a parent count for HRA?

Nothing in section 10(13A) of the 1961 Act stops you paying rent to parents and claiming it, provided the parent, not you, owns the home and the rent moves from your account to theirs each month. If you co-own the flat, rent for your own share does not count.

The exemption is the least of HRA received, rent minus 10% of basic (plus DA, if any), and 50% or 40% of basic by city.

Mohit's ₹30,000 rent at ₹25 lakh: does the old regime win?

Mohit earns a gross salary of ₹25,00,000, with a basic of ₹1,00,000 a month (₹12,00,000 a year) and HRA of ₹50,000 a month. He lives in a Pune flat his mother owns and pays her ₹30,000 a month, ₹3,60,000 a year.

His HRA exemption is the least of ₹6,00,000 of HRA, ₹3,60,000 minus ₹1,20,000 (₹2,40,000), and 50% of basic (₹6,00,000): ₹2,40,000. Pune is one of eight 50% cities under Rule 279 of the Income-tax Rules, 2026 (Mumbai, Delhi, Kolkata and Chennai, plus Bengaluru, Hyderabad, Pune and Ahmedabad from 1 April 2026), but here rent minus 10% of basic is the smallest.

Add the full ₹1,50,000 under section 80C of the 1961 Act (section 123 of the 2025 Act), ₹25,000 under 80D, ₹50,000 of his own NPS under 80CCD(1B) and ₹2,500 of professional tax: ₹4,67,500, or ₹3,32,500 short of the ₹8,00,000 line the section 80C guide works out for FY 2026-27.

After the ₹50,000 standard deduction, his old-regime taxable income is ₹19,82,500, and tax is ₹1,12,500 plus 30% of ₹9,82,500: ₹4,23,540 with 4% cess. The new regime charges ₹3,19,800, or ₹1,03,740 less, so the HRA claim saves him nothing.

Paying his mother's health premium (she is 64) would add ₹50,000 under 80D, and a home loan on a flat in another city up to ₹2,00,000 of interest under section 24(b). That makes ₹7,17,500, still ₹82,500 short; the new regime would stay ₹25,740 cheaper. Old vs new tax regime compares four such stacks at this salary.

How much rent to a parent makes the old regime draw level?

Keep Mohit's structure (basic 48% of gross salary, HRA half of basic), the same ₹2,27,500 of other deductions and a 50% city. For FY 2026-27 the old regime needs ₹6,41,667 of deductions at ₹18 lakh, and ₹8,00,000 from about ₹24.75 lakh up to ₹50 lakh. A bigger basic takes a bigger 10% off the rent, so the same ₹30,000 earns less exemption as salary rises.

Gross salary Basic a year Exemption on ₹30,000 rent Short of break-even Rent a month to draw level
₹18 lakh ₹8,64,000 ₹2,73,600 ₹1,40,567 about ₹41,700
₹25 lakh ₹12,00,000 ₹2,40,000 ₹3,32,500 about ₹57,700
₹40 lakh ₹19,20,000 ₹1,68,000 ₹4,04,500 about ₹63,700

Only rent above the last column saves any tax. In a 40% city no rent gets there at ₹18 lakh or ₹25 lakh on this stack, because the exemption stops at 40% of basic: ₹3,45,600 and ₹4,80,000.

Rent above ₹50,000 a month also means deducting 2% TDS (the rate since 1 October 2024), even for a parent, and a rent far above what the flat would fetch from a stranger invites questions.

What tax does your parent pay on the rent?

For FY 2026-27, Mohit's mother draws a ₹40,000 monthly pension from her former employer, ₹4,80,000 a year, taxed as salary with the new regime's ₹75,000 standard deduction. The ₹3,60,000 of rent is her income from house property: with no property tax paid, section 24(a) of the 1961 Act takes a flat 30% (₹1,08,000), leaving ₹2,52,000. A token rent does not help, as the figure taxed is what the flat would reasonably fetch, if that is higher.

Her total income is ₹4,05,000 plus ₹2,52,000: ₹6,57,000. The new regime's section 87A rebate (section 156 of the 2025 Act) makes tax nil up to ₹12,00,000 of taxable income, so she owes nothing, and would until the rent passed about ₹94,600 a month. She must still file a return, as her income is above ₹4,00,000.

A parent whose pension, FD interest and other income already pass ₹12,00,000 pays tax on the rent at their slab, and the household can pay more than the HRA saves; money given as a gift is taxed differently.

What paperwork does the claim need?

Keep a signed rent agreement, rent receipts and monthly bank transfers rather than cash. The landlord PAN rule applies to a parent too: rent above ₹1,00,000 a year means giving your employer their PAN. For tax year 2026-27 the proofs go in Form 124, which replaced Form 12BB.

If HR will not accept the claim, it is not lost: with no business income, you can make it under the old regime in a return filed by the due date. A late return is taxed under the new regime.

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Frequently asked questions

The HRA rules do not demand one, but many employers ask for it, and it helps if the claim is ever questioned. Where one is made, it usually states the monthly rent, the period and the address, and is signed by both of you; the rent you declare to your employer should match it.
It can, as with any HRA claim. What holds up is a home in the parent's name, a rent close to what the flat would fetch, monthly bank transfers and the same rent shown in the parent's return; rent the parent never reports is the weak point.
No. The HRA exemption needs rent actually paid, so without it the whole HRA in your salary is taxed. A rent figure on paper that never reaches your parent's account does not count either.

This is general information for salaried individuals in India, not personalised financial advice.